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Sciences 
Corporatioii 


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^.V^ 


23  WkST  MAIN  STREIT 

WEBSTn,N.Y.  145M 

( 71* )  •72-4503 


CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICIVJH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


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the  usual  method  of  filming,  are  checked  below. 


D 


D 


n 


n 


n 


n 


Coloured  covers/ 
Couverture  de  couleiir 


I     I    Covers  damaged/ 


Couverture  endommag^e 


Covers  restored  and/or  laminated/ 
Couverture  restaurie  et/ou  peliiculie 


I      I    Cover  title  missing/ 


Le  titre  de  couverture  manque 


I      I    Coloured  maps/ 


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Coloured  inic  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 


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Modification  dans  la  m6thode  normale  de  filmage 
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I      I   Coloured  pages/ 


1/ 


n 


Pages  de  couleur 

Pages  damaged/ 
Pages  endommag6es 

Pages  restored  and/oi 

Pages  restaurdes  et/ou  peliicuites 


I — I    Pages  damaged/ 

I      I    Pages  restored  and/or  laminated/ 


1 

P 
o 
f 


C 

b 
tl 

s 
o 

fi 

s 
o 


Pages  discoloured,  stained  or  foxed/ 
Pages  dAcoiories.  tachetdes  ou  piqu6es 


r~^   Pages  detached/ 


Pages  ddtach^es 

Showthrough/ 
Transparence 

Quality  of  prir 

Quality  in^gale  de  S'impression 

Includes  supplementary  materii 
Comprend  du  materiel  suppidmentaire 

Only  edition  available/ 
Seule  Edition  disponibie 


r^  Showthrough/ 

I      I  Quality  of  print  varies/ 

I      I  Includes  supplementary  material/ 

I      I  Only  edition  available/ 


T 
si 
T 
w 

ly 

di 

ei 

bi 

riS 
re 
m 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc..  have  been  ref limed  to 
ensure  the  best  possible  image/ 
Les  pages  totaiement  ou  partiellement 
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This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  fiimi  au  taux  de  rMuction  indiquA  ci-dessous. 


10X 

14X 

18X 

22X 

2SX 

30X 

A 

J 

12X 


16X 


aox 


24X 


28X 


32X 


tails 
du 

jdifier 
une 
nage 


The  copy  filmed  here  has  been  reproduced  thenks 
to  the  generosity  of: 

Library  of  the  Public 
Archives  of  Canada 

The  Images  appearing  here  are  the  best  quality 
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Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  beck  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  Illustrated  Impres- 
sion, and  ending  on  tie  last  page  with  a  printed 
or  iiCustrated  impression 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^'  (meaning  "CON- 
TINUED"), or  the  symbol  V  (moaning  "END"), 
whichever  applies. 

Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  In  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


L'exemplaire  filmA  fut  reproduit  grAce  k  la 
gAnArositA  de: 

La  bibiiothdque  des  Archives 
pubiiques  du  Canada 

Las  images  suivantes  ont  At*  reproduites  avec  le 
plus  grand  soin,  compte  tenu  de  la  condition  et 
de  ia  nettetA  de  l'exemplaire  f iimA,  et  en 
conformitA  avec  ies  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  ia  couverture  en 
papier  est  ImprlmAe  sent  filmAs  en  commen^ant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernlArc  page  qui  comporte  une  empreinte 
d'Impresslon  ou  d'illustration,  soit  par  le  second 
plat,  selon  \b  ces.  Tous  les  autres  exemplaires 
originaux  sent  filmAs  en  commenpent  par  la 
premlAre  page  qui  comporte  une  empreinte 
d'Impresslon  ou  d'iliustration  et  en  terminant  par 
ia  dernlAre  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboies  suivants  apparaftra  sur  la 
dernlAre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbaie  — *>  signif ie  "A  SUIVRE",  le 
symbole  V  signifie  "FIN". 

Les  cartes,  planches,  tableaux,  etc..  peuvent  Atre 
filmAs  A  des  taux  de  rAduc  *on  diff Arents. 
Lorsque  le  document  est  trop  grand  pour  Atre 
reproduit  en  un  seui  ciichA,  11  est  filmA  A  partir 
de  i'angle  supArieur  gauche,  de  gauche  A  drcite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  nAcessaire.  Les  diagrammes  suivants 
iliustrent  la  mAthode. 


rata 
> 


eiure, 
A 


3 

ax 


1  2  3 


1 

2 

3 

4 

5 

6 

REPORT 


OK 


HON.  ISRAEL  T.  HATCH 


UPON  THB 


Operation  of  the  Revenue  Laws 


AND 


THE  EECIPROCITY  TREATY 


UPON  THH 


If  ORTHEKlf  FKONTIEB. 


COMMDNICATED     TO     CONGRESS,     REFERRED     TO     THE     COMMITTEE     OF    WAYS 
AND    MEANS,    AND    ORDERED    TO    BE    PRINTED. 


JtrnsTE  istii,  iSGO. 


WASUINGTON. 
1860. 


*'^%»a. 


(v 


PiECIPROCITY  TREATY. 


Report   of   Hon.   Israel   T.  Hatch, 

JUNE    l«tU,    1800, 

Communicated  to  Congress,  referred  to  the  Committee  of 
Ways  and  Means,  and  ordered  to  de  Printed. 


To  Hon.  Howell  Cobb,  Secretary/  of  the  Treasury: 

In  discharging  the  special  duty  assigned  to  me,  of  examining  the  operations 
of  the  leveniie  laws  and  the  Reciprocity  Treaty  on  our  northern  fi-ontier  with 
Canada,  I  beg  leave  to  report  that  I  have  visited  the  principal  points  of 
intercoursft  between  the  two  countries  for  the  purpose  of  acijuiring  practical 
information,  and  have  also  had  interviews  and  correspondence  with  leading 
individuals  whose  interests  are  afi'ected  by  the  treaty,  and  who  are  engaged 
in  the  various  pursuits  of  trade,  agriculture  and  manufactures.  The  personal 
obgervation  I  have  thus  been  enabled  to  give  the  workings  of  the  treaty  at 
the  places  whore  its  effects  are  perhaps  most  perceptible,  and  the  information 
derived  thus  from  the  every-day  experience  of  those  who  do  business  under 
it,  I  have  believed  would  furnish  most  important  data  for  forming  a  practical 
judgment  of  its  operation. 

The  Treaty  of  Reciprocity  produced  a  revolution  in  the  operation  of  the 
revenue  laws,  as  well  as  in  the  re\  enue  itself.  The  principle  of  recipiocity  in 
the  commercial  intercourse  of  the  United  States  with  Canada,  has  met  the 
approbation  of  all  political  parties  iii  this  country  at  all  times.  The  territory 
of  the  provinces  is  indented  with  our  own  along  a  line  extending  across  the 
continent  from  ocean  to  ocean.  The  wages  of  labor  (the  gieat  modern  test 
of  cne  phase  of  national  equality)  are  nearly  equal  in  both  countries.  The 
cost  in  the  production  of  wheat  and  other  cereals  differs  but  little  on  both 
sides  of  the  boundary  line.  Shown  thus  to  be  apparently  commercially  alike 
in  these  leading  considerations,  and  minor  parallels  confirming  the  similitude, 


I 


Si' 


it  1*8  not  Hiiiguliir  that  at  variouH  periods  of  our  national  cxifitcnce,  tho  itlea  of 
recipPKMty  in  trade  between  the  two  countries  has  received  the  favorable 
reyrard  of  oininent  men. 

"  The  jroverntnent  of  the  United  States,"  said  Mr,  Clay,  in  his  letter  of 
the  1 1th  October,  1826,  to  Mr,  Vaughan,  "luw  always  been  anxious  that  tho 
triule  between  them  and  tho  British  colonies  should  bo  placei  on  a  liberal  and 
equitable  basis.  There  has  not  been  a  moment  since  tho  ado])tioii  of  tho 
present  constitution,  when  thoy  have  not  been  willing  to  apply  to  it  j)rineiplefi 
of  fair  reciprocity  and  equal  competition."  Three  years  after  tho  date  of  this 
letter,  during  tho  ])re«idency  of  General  Jackson,  Mr.  Van  Buren'a  letter  of 
instructions  to  Mr.  McLean,  who  was  then  our  Minister  at  tho  Court  of  Su 
James,  announced  tho  principles  on  which  this  government  re-opened  i>egoti- 
ations  relative  to  tho  trade  with  tho  British  colonies  in  North  Amevica.  Ho 
said:  ''Tho  policy  of  tho  United  States  in  rehition  to  their  commercial 
intercourse  with  other  nations  is  founded  on  principles  of  perfect  equaKty  and 
reciprocity.  By  tho  adoption  of  these  principles  they  have  endeavored  to 
relievo  themselves  from  tho  discussions,  discontents  and  embarrassments 
inseparable  from  the  iiriposition  of  burdensome  discriminations.  These  prin- 
ciples were  avowed  while  they  were  yet  struggling  for  their  independence, 
are  recorded  in  thoir  first  trcfity,  and  have  been  adhered  to  with  tho  most 
scrupulous  fidelity." 

The  freedonj  of  commerciiU  intercourse  has  never  beon  more  ably  advocated 
than  by  Thomas  Jefferson.  In  the  report  made  by  him  in  1793,  when  he 
wm  Secretary  of  the  Treasriry,  as  if  ho  would  rescue  the  term  "  reciprocity" 
from  the  opprobrium  it  must  sometimes  encounter,  ho  made  uso  of  tho  fol- 
lowing memorable  words:  "Should  any  nation,  contrary  to  our  wishes, 
suppose  it  may  better  find  its  advantages  by  continuing  its  system  of  prohibi- 
tions, duties  and  regulations,  it  behooves  us  to  protect  our  citizens,  their  com- 
merce and  navigation,  by  counter  prohibitions,  duties  and  regulations,  also. 
Free  commerce  and  navigation  are  not  to  be  given  in  exchange  for  restrictions 
and  vexations,  nor  are  they  likely  to  produce  relaxation  of  them." 

Familiar  a.s  the  public  mind  must  have  been  made  with  the  principles  which 
finally  produced  this  treaty,  by  these  and  similar  almost  authoritative  expres- 
sions of  opinion ;  brought  home  at  intervals  as  these  ideas  must  have  been  to 
tho  legislation  and  di[)lomacy  of  the  country,  it  is  not  surprising  th  t  this 
practical  but  limited  experiment  in  substantial  free  trade  was  attempted. 
The  leading  idea  of  tho  treaty  itself  was  to  permit  tho  introduction  of  the 
products  of  one  country  into  tho  other  fiee  of  duty,  and  consequent 
reciprocal  benefits  were  expected  to  follow  for  both.  The  various  colonies 
included  in  its  provisions  wore  left  to  regulate  their  own  tariffs,  and  each 
colonial  power  can  annul  its  honorary  obligations  without  reference  to  its 
Bister  provinces  or  the  engagements  of  the  empire.     No  statesmanship  could. 


howovor,  foretell  tho  workinsjs  of  tho  tronty,  or  had  >i  lij^lit  to  antici|)at<f 
leijisldtioii  adverao  to  it*  Hpirit.  Correct  in  principle  as  tho  treaty  itself  was, 
tho  perversion  of  its  spirit  ami  the  ilisrojjard  of  its  snhstanco  on  tho  part  of 
Canada  have  ))roduceil  results  it  is  the  province  of  this  Report  to  exhibit. 

The  ctfeeLs  of  the  Reeiproeify  Treaty  were  first  and  iniino-  riiii<..i  siai.Mr«. 
dintoly  visible  in  the  great  change  produced  in  our  collection  vinniivoint  mwin 
of  revenue  upon  the  northern  frontier,  and  cannot  fail  to  attract  attention. 
In  18.54,  tho  last  year  nnati'octed  by  tho  treaty,  although  the  enumeration 
was  then  incomplete,  the  revenue  on  articles  rendered  free  by  tho  treaty,  dur- 
ing Hubsequent  years,  and  imported  from  Canaila  alone,  amounted  to  moro 
than  $1,243,403.  (See  Aj)pendix  No.  1.)  Assuming  this  as  a  basis  of  cal- 
culation in  the  ordinary  mode  of  comi)Uting  an  increase  of  revenue,  and  that 
tho  revenue  would  have  continued  to  increase  in  tho  same  ratio  as  during  the 
previous  Hvo  years  (Appendix  No.  2),  wo  should,  for  the  five  a  ears  now  past 
and  ended  June  30th,  1859,  have  collected  a  revenue  of  <J7,1 00,0.59,  or 
ijtl,433,331  annually  on  imporbitions  from  this  province  alone;  and  we  should 
at  the  present  time  have  a  yet  larger  revenue  from  this  source,  if  the  treaty 
were  abrogated  to-day,  for  tho  geographical  and  political  reasons  which  made 
the  Canailians  seek  our  marktit  for  the  sfile  of  th(!ir  products,  remain  unim- 
paired in  every  particular. 

The  revenue  derived  by  Canada  from  tho  same  class  of  merchandise  was, 
during  the  year  1854,  as  stated  by  Mr.  Bouchette,  then  the  Canadian  Com- 
jnissioner  of  Customs,  only  $190,671,  or  less  than  one-sixth  of  $1,243,403, 
the  amount  levied  that  year  on  Canadian  productions  by  tho  United  States. 

During  the  same  year  (1854)  the  revenue  derived  by  the  i,oss  of  rpvnnuo 
United  States  on  the  chief  importations  from  all  the  provin-  *°  "'"  ^'-  '^"''*''- 
cos  included  in  tho  treaty,  was  $1,524,457  (see  Appendix  No.  1);  computing 
the  increase  of  revenue  during  the  five  succeeding  years,  upon  the  basis  of 
tho  increase  during  the  five  years  next  before  the  treaty,  tho  revenue  derived 
from  this  source  would  have  been  $9,257,580,  or  $1,851,517  annuallj'. 

Several  items  of  these  importations  are  not  included  in  thi.s  calculation,  and 
we  are  now  near  the  close  of  an  additionjd  year,  when  the  revenues  from  this 
source  for  the  six  years  elapsed  since  the  treaty  would  have  been  $1 1,109,103. 

The  influence  of  tho  treaty  on  the  revenue  of  the  United  Exponso  of  coi- 
States  is  also  clearly  shown  by  comparing  the  receipts  at  tho  tho  "revenue  coi- 
ports  of  entry  on  the  northern  fi-ontier,  on  all  importations  ''^'^'''''' 
from  Canada,  with  the  expense  of  collecting  them,  the  necessary  expenditure 
being  for  the  last  four  years  $189,730  (see  Appendix  No.  3),  more  tlian  the 
sum  collected — a  result  contrary  to  the  anticipations  of  some  who  advocated 
tho  adoption  of  the  treaty,  and  whose  views  are  well  expressed  in  the  very 
able  report  of  the  Hon.  D.  L.  Seymour,  who  argued  that  "the  laws  of  trade 
forbid  the  conclusion  that  a  foreign  commerce  which  shall  afford  to  such  a 


6 

poopio  (18  tlio  population  of  thotto  coloiiius  thoir  priiu-ipal  swpplicH  of  iiweHsii* 
rioB  and  Itixnrius,  will  bo  oithcr  roduccd  in  aujoiiiit  or  shorn  of  its  revenues.''* 

Tlio  larj^o  amount  of  our  iinportatioim  from  t'auada  sinco  tlio  treaty,  would 
form  no  accurato  tost  of  the  income  wo  mifj;ht  liavo  obtained  from  that  soiuvo. 
In  1850  the  articles  received  from  Canada  by  the  United  States  and  rendered 
free  by  the  treaty,  aim^'mted  in  value  to  %1 7,810,084,  besiden  many  important 
but  uuenumerated  itcniH.  At  the  uverafro  duty  of  20  per  cent,  tlie  reveniie 
wouM  have  trained  more  than  $;],r>G'2,\'.i8  on  the  imp(trtationw  of  tli.it  year; 
or  RH  Canada  received  from  us  during  the  same  year  i7,899,.')r)4,  the  value 
of  the  corresponding  articles,  there  waj  for  that  year  a  balance  of  trade  in 
favor  of  Canada  amounting  to  $!),91 1,130,  the  duties  on  which  would  hnvo 
been  $1,))8'J,220.  During  the  four  years  elapsed  since  the  treaty  came  into 
ed'ect,  and  ended  Slst  December,  1858,  wo  have  received  from  Canada  $28,- 
771,090  in  value  of  the  articles  enumerated  in  the  treaty  more  than  hhe  has 
received  from  us.  At  the  same  rate  of  duty,  the  re\enuo  on  them  would 
have  been  $5,754,338,  or  $11,722,089  if  computed  on  $58,013,449  (see 
Table  D),  the  value  of  commodities  received  by  us  since  the  treaty,  and  simi- 
larly tree. 

The  collection  and  safe  keeping  of  the  large  income  which  would  have 
accrueil  to  our  revenue  under  the  former  system  cf  duties  would  have  iti- 
posed  no  additional  expense  upon  our  government,  as  an  organization  suitable 
for  the  purpose  already  exists  in  the  custom-houses  necessarily  maintained 
on  our  nortliern  frontier  to  prevent  free  trade  in  these  commodities  on  which 
duties  are  now  levied,  (and  chiefly  collected  at  the  Atlantic  ports  of  entry,)  and 
to  protect  the  public  againr.t  the  total  loss  of  the  revenue  which  must  arise  if 
foreign  merchandise  could  be  thrown  into  the  interior,  free  of  duty,  through 
the  northern  frontier. 

inrreiiKc  of  tii«  The  marked  diango  in  the  amount  of  free  goods  importe<i 
KomiHiniporieii  f''om  Canada  into  the  United  States  since  the  treaty,  is  shown 
lom  lauuiia.  ^^  ^^^  following  tablo,  exhibiting  also  in  contrast  the  im])or- 

tiitions  from  the  same  province,  and  subject  to  duty,  from  June  30th,  1850, 
to  July  1st,  1859. 

IMPORTATIONS  TO  THE  UNITED  STATES  FROiM  CANADA. 


FRKK  OK  UUTY. 

fi36,4r)4 


HUHJKOT  TO  UUTV. 

$.3.(14  !M)1 6 


1,529,(185  3.42(),7H() 


1850  

1851  

1H,')2  761,.57I  ;{,H28,;i!)8 

lM•^   ],17S),682  4.0!)8,4;i4 

1854  380,041  (i,;{41,4!l8 

18.55  6,87ti.4!t()  .5,.m5,8]8 

185(i  1(>,847,822  (MO.lJTo 

18.57  17,000,737  (!!H,()!)7 

18.58  11,267.618  3i;j.!i.53 

1859  l.'{,703.748 .504.91i9 


Total, $70,783,854 


$28,800,344 


I 


i 


I 


Tho  abovo  atiitistics  hHow  tlmt  whilo  for  tho  fivo  vfars  tioxt  prcctMliii;^  the 
treaty,  ilufy  wiis  paiil  o'l  nearly  tlvo  times  tlio  amoiitit  of  iiiipDitJitioim  from 
Cnuailaiu  wcro  admitlod  freo  of  duty,  tho  exact proportioim  hv\n<r  ^i,4H'i,i'.V,i 
of  frco  poods  agaiiiiit  )i!2 1,344, 132  of  tho  other  chiHH  siiieo  iiw  treaty  and 
boyiuiiing  with  our  fiHcal  your  1850,  until  July  iHt,  1850,  a  period  of  f(uir 
yoarw,  siujilar  importations  to  tho  amount  of  |l50,41 0,025  have  eontrihuted 
nothing  at  all  to  our  rovenuo,  whilo  wo  have  charged  duliis  only  on 
ij!2, 150,30  1,  or  about  one-thirtieth  part  of  tho  amount  atlmitted  free  of  duty. 

On  closer  examinaticm  it  will  bo  seen  that  a  largo  iironor- 
tioii  of  tho  dutv-pavmir  articles  imported  from  Canada  con-    pmiiii.iiiiiiHdfimi- 

,  ,.     .     "^  ,  1     .  ,  T  .r,  IKlllll.llllilUMiriPC. 

.sistd  of  commodities  not  produced  in  tho  country.  In  1858 
tho  dutiable  im])urtations  <"roin  Canada,  as  shown  by  tho  abovo  table,  were 
only  $313,053;  of  which  iron,  hardware  and  sidt,  articles  not  ja-oduced  in 
Canada  for  exportation  in  any  ai)preciable  quantities,  alone  furnished  $103,- 
;'j05;  of  the  remaindor  a  considerable  portion  was  also  of  foreign  origin. 
A.8  tho  same  reasoning  applies  also  to  other  years,  I  present  the  following 
tubular  statement  for  tho  same  term  of  four  years    mding  June  30th,  1850. 


TABLE  A. 

is&o. 

$()4n.,'J7.') 


lofni  niTiount  of  duty-paying 

uriiclcs   iiiiporlcd   into  tlie 

V.  1'-.  tVoiM  (Jnniula 

Ir»n,  Imrdwaro  and  salt SO,!,!)!).') 

Am't  of  Canadian  and  oth(!r 
lootU  cliiirgcd  witli  duties 
111  tlie  U.  S. $130,370 


1867. 


f.0 1,007 
531,(111 


1C0,08G 


1868. 


i<»:{,.')!).5 


ISfiU. 


."jfl  1.969 
;i  !!),.'">.'").'■> 


119,.358        1S4,4U 


This  statement  demonstrates  that  during  these  years  wo  have  not  collected 
aniually  duties  on  much  more  than  $100,000  in  vjiluo  of  merchandise  ac- 
tudHy  produced  in  Canada,  yielding  at  an  average  of  20  per  cent,  about 
$25*000  towards  defraying  the  yearly  expenses  of  collection,  and  of  guarding 
a  frontier  of  inland  coast  six  thousand  miles  in  extent. 

I  present  a  statement  showing  in  contrast  the  value  of  freo  and  duty-pay- 
ing irticles  exported  from  this  country  to  Canada  before  January  1st,  1850, 
from  December  30th,  1840.  .     . 

TABLE  B. 


Value  of  goodii,  etc..  from  tho  V.  3. 
free  of  duty  in  Canada.  cUielljr 
free  before  the  treaty. 


Vahip  of  poods,  etc..  from  the  U.  S. 
paying  duty  in  Ciinada. 

1850  ,..$.5,803,732  $  7!tl,128 

1851  (i,981,735  1,384,030 

1852  7,013,003  810,090 

18.53  10,0.50,582  1,125,.505 

18.54  1.3,449,341  2.08.3,7.56 

18.55  11,449.472  9,379,204 

1850 12,770,923  9,9.33,586 

18.57  „ 9,900,4,30  10,2,58,220 

18f3  8,473,007  7,101,958 


8 
Tlio  oonlriwl  iMitwcdn  ijl.'l  1  ■'J.O.').!,  llm  toliil  ainouiit  of  duty 

fdnfrnut  lii'lwi'(>n  .  ,      ,  .     i    i-  /i         i     ■      .<  ►  ,  i    x.,,  ,>,.. 

iiiitioA    w\u'i\   DM   paying  ^ixxIh  niipoitiHi  troiii  (  iiiiH<la  iii  IN.'iH,  kikI  VH,47o.- 

tliin*    In   I'Himiiii,    007,  tlii^  valiio  uf  (UIF  oxpoi'tM  to   C'atiada,    paying  duty  to 

■inl     on    Cjinailliin       i     ,  .         ■       .t  v 

iinMiuriiMn*  In  iiio   iMut  Country  III  tlio  coiroHpondiiig  yoar,   cannot  cMcapo  no- 
nie.  Miiii'rt.  (ici.,  l»ut  n  inoro  just  coniparison  will  oxoludo  foniigu  mer- 

(:ban(liiH>  caniod  through  loth  countries. 

A  glaring  and  important  contraHt  Htiil  romains.  in  18/58,  when  wo  col- 
loctud  duties  on  aliout  ♦  100,000  in  valuo  of  Canadian  proiiuctioiiH,  tlio  pro- 
ductH  (>1  Aniciicaii  lahor  on  which  duties  woro  paid  in  ('anada  amounted  to 
$l,r)'24,r)U;i.  Tho  stalis'Jca  of  ISGr)  infer  in  part  to  goods  iinptntcd  l)ofor« 
thu  treaty,  iind  aro  consequuntly  omitted  in  the  following  Htatemcnl,  and  a 
reduction  should  bo  inadu  from  tho  morclmndiso  assumed  to  hu  C'linadiitn ; 
hut  neither  country  has  thought  thi  distinction  worthy  of  a  place  in  its  stJi- 
tistics,  and  tlio  caso  (loes  not  reipiiro  tlio  miniito  ejahoration  propcr'y  observed 
when  the  evide  ice  on  both  sides  is  nicely  balanced  in  the  scale  of  justico. 

TAnLK  C. 

\K,a.  isr>7.  \s;.%. 

rriidiicls  (if  the  ir.  S.  imying 

duty  in  Caniidu $7,nHl,2M  G,2l);t,.'{20  ■t.,')2t..')03 

rriidiH'ts  (if  ('itnudii  inlying 

duly  ia  U.  S 13(>,370  KiO.OHt?  119,358 

Vuhio  of  Ani«r!caii  prodiicta 
clmrjrcd  witli  duty  in  ('iin- 
luiii,  al)()V(^  the  ('nnndiuii 
jirodiicls  clinrged  witli  duty 
intlieU.S $7,HM,914  6,043,234  4,40r),145 

During  these  years  tho  total  amount  of  priiduct  of  Americjin  industry  taxol 
ill  Canada,  was  15(18,294,293  more  than  the  amount  of  Canadian  productiois 
tiixed  in  this  country:  redj)rocity  and  C(iuality  being  in  this  instance  rep'o- 
Hoiited  by  tho  relative  proportions  of  45  to  1.  This  is  tho  condition  of  trido 
purchased  as  I  havo  already  shown  by  a  loss  of  revenue,  being  in  1854,  the 
last  year  before  the  operation  of  tho  treaty,  more  than  six  times  the  reveiuo 
collected  by  Canada  during  that  year  on  the  articles  made  free  by  tho  troity 
and  imported  from  tin  United  States. 

Owing  to  the  geographical  position  of  Canada,  by  which  she  is  pent  up 
behind  our  territory  without  any  moans  of  carrying  goods  from  the  sea  coast 
for  more  than  half  the  year,  sho  must  receive  through  us  the  earliest  supplies 
for  spring  trade,  and  our  territory  furaishes  at  "all  times  the  cheajiost  and 
most  expeditious  route  for  tho  carriage  of  many  commodities,  especially  thosa 
of  tropical  origin,  to  Canada.  ;', 

It  might  have  been  supposed  that  a  system  of  trade  admitting  nearly  all 
tho  productions  of  Canada  into  tho  United  S  .tes  free  of  duty,  wh'le  an 
R\erage  revenue  of  over  one  million  is  annually  levied  on  merchandise  of 


i 


I 


f 


•  r 


\ 


sarly  all 
h'le  an 
idise  of 


Ainoiican  orij^!n  tnkoii  into  ('unudn  (seo  Appendix  No.  4),  would  liavc  bwn 
at  luaNt  HatiHtactory  to  tliat  |)rovin('e,  and  liavo  exoinptod  us  from  unfiii^ndly 
eornniiticial  l<-<riHlation  on  lior  part.  TliiH  miin  constitutoN  a  (|uail(u-  nl'  tliu 
wholn  ordinjiiy  ii'voiiuo  of  Canada,  and  is  loviod  on  (lio  fruits  of  our  imluHtry 
at  a  tinio,  wlmn,  h>  far  as  her  nisou'.ros  liavo  as  yot  lu-ttn  dovclojitid  (willi  tlio 
trivial  exceptions  nbvady  nainwl,  nnd  unworiliy  of  niontion  in  a  national 

'■  point  of  view),  slio  enjoys  in  tiio  salo  of  hor  productions  frco  from  all  duties 

for  tlio  prot(!ction  of  our  labor  and  tlie  incroaso  of  our  n-vcnuo,  every  advan- 

;,  taijo  posscswsd  l>y  llu-  Slates  of  this  Union,   reciprocating,  by  iho  imposition 

of  duties  such  as  no  Statu  of  the  Union  could  adopt  or  demand  upon  the 
productions  of  the  otliei-s.  This  is  the  return  made  to  us  for  a  polii'v  full  of 
special  concession  in  their  favor,  and  the  revemie  raised  by  taxing  our  labor 
has  boon  spc-nt  in  jmblic  works  expressly  and  avowedly  inttaideil  to  divert 
our  commerce — thus  dimini.HliJng  the  al)ility  "•'  our  people  to  support  our 
own  gov "rnment,  »is  is  more  particularly  stateil  in  those  parts  of  this  Report 
which  treat  of  the  railroads  and  canals  of  Canada. 

t'ommerco  and  navigation  are  the  medium  of  exchange  for  the  articles  of 
production  and  consumption  between  various  countries,  and  thiough  their 
nieans  revenue  is  jiroduced.  Hence,  to  estimate  correctly  the  opeiation  of 
thn  Heiiiprocity  Treaty  Jipon  the  revenue,  '.vould  re(|iiiro  an  exainiiuition  of  the 
commercial  cK^iru^nts  which  either  Jm reiwe  or  diminish  it. 

A  liberal  policy  towards  American  manufactures  was  al-  niHtnrirni  fact  in 
ways   urged   by  Hritisji    -statesmen   as  a  reason  for  irrantinir    ri'iViviMciccimiiKo 

J  r^  J  fl  .-1        In  n'M'lllll'  IllvVMUIIll 

admission  to  Canadian  i)roductions.     In  1843  a  celebrated    tinir (.inniiioimp- 

'  nil    Ahii'i'K'Mii    nnd 

dispatch  was  issued  by  Lord  Stanley,  now  Earl  of  Derby,  lamuiiuu  com'rco. 
recommending  that  all  diseriminating  duties  in  Canada  against  American 
manufactures  should  cease.  Until  1840  nuich  (hictuating  legislation  had  ex- 
isted between  the  two  countries,  in  accordance  with  an  artificial  system  little 
calculated  to  promote  the  common  good.  Sometimes  an  identity  of  opinion 
was  nearly  established ;  at  other  times,  the  diifercnce  was  so  great  thrit  on 
the  l/th  day  of  March,  ISiil,  the  President  of  the  United  Slates  issued  a 
proclamatior,  prohibiting  the  trade  between  this  country  and  the  British  col- 
onies of  North  America.  Hitherto  dill'erential  duti"''  had  been  exacted  in 
Oreiit  Britain  on  the  wheat  of  the  United  States  am.  the  colonies,  with  an 
intention  of  forcing  our  agricultinal  productions  through  Canada  by  way  of 
tlie  St.  Lawrence.  By  an  act  of  Congress  dated  August  Gth,  1840,  wo  per- 
mitted the  [iroduce  of  Canada  to  bo  sent  through  our  lines  of  communication 
to  the  ocean,  either  in  bond  or  with  a  right  of  drawkick,  on  paying  two 
and  a  half  per  cent,  at  the  place  of  exportation.  The  etl'ect  of  this  law  waH 
largely  to  divert  from  the  St.  Lawrence  the  shipments  hitherto  made  through 
it,  and  send  them  through  our  sea  porta,  and  it  will  thus  be  seen  that  under 
the  operation  of  this  law  wo  were  the  carriers  for  Canada ;  but  since  the  treaty 


10 


tho  Cunadiiiiis  Imvo  not  only  carried  the  comnioditieb  rwjuired  for  their  own 
use,  but  iiiivu  become  the  forwarders  and  carriers  for  us.  Although  'he  free 
navigation  of  tho  St.  Lawrence  had  been  for  years  lidd  up  to  the  great  west 
a«  an  ineatiniabie  prize,  the  Canadian  or  British  governino'it  always  j)roferrod 
to  enjoy  jU  advantages  in  driving  a  good  bargain  with  us,  rather  than  rely 
upon  its  uncertain  half  ye  ir's  navigation  for  the  outlet  of  their  surjJus  pro- 
ductions.    They  continued  to  seek  a  free  access  to  our  markets. 

In  1847,  when  the  colonies  suffered  under  a  removal  of  tho  exclusive  privi- 
leges it  had  formerly  enjoyed  in  Great  Britain,  duties  on  Americtm  manufac- 
tures weie  reduced  from  12^  to  *i^  per  cent,  and  increased  on  liritish  manu- 
factures from  5  to  7^  per  cent.;  thus  removing  all  difierontial  duties  against 
tho  United  States.  In  1849  the  Provincial  Legislature  passed  an  act  author- 
izing tho  removal  of  duties  on  all  articles  being  tho  growth  and  production 
of  ihe  United  States,  on  condition  that  we  should  pass  a  similar  law.  Sir  H. 
L.  Bulwor,  when  British  Minister  at  Washington,  pressed  u])on  our  govem- 
ment  the  considera'ion  of  such  a  treaty  as  became  law  in  1854,  urging,  as  a 
reason,  the  liberal  policy  of  Canada  towards  our  manufactuies.  The  follow- 
ing is  an  extract  fiom  his  letter  to  our  Secretary  of  State. 

"  I  have  already  expressed  to  you  at  different  periods,  and 
the*HM"ish"^fiiiiis^  especially  in  my  note  of  the  22d  of  Maich  last,  the  disap- 
iion"  ipf  Va'iuIiL'iu  poihtmcnt  which  was  experienced  in  Canada,  when,  at  the 
**"  "'' "'  last  session  of  Congress,  it  was  known  that  no  progress  what- 

ever had  been  made  in  the  bill  which  had  been  bi-ought  forward  for  three 
successive  years,  for  reciprocating  the  measures  which  passed  the  Canadian 
Legislature  in  1847,  and  which  granted  to  the  natural  produce  of  this  coun- 
try an  entry  free  of  duty  into  Canada,  whensoever  the  Federal  Legislature  of 
the  United  States  should  pass  a  law  similarly  admitting  into  the  United  States 
the  niiturul  produce  of  the  Canadas.  The  disappointment  was  the  greater 
masmuch  as  the  Canadian  government  has  always  adopted  the  most  liberal 
commercial  policy  with  respect  to  the  United  States,  as  well  in  regard  to  the 
transit  through  its  canals  as  in  regard  to  the  admission  of  viam/factured 
goods  coming  from  this  country  T 

The  treaty  itself  was  formally  declared  to  be  founded  on  a 

Formal    iloclara-  •'  •'  _ 

tionK  of  ti.e  basis  of   dosiro  to  "  ivffulate  the  commerce  and  navigation  between  tho 

the  treaty.  .  °  .  ^    . 

respective  territories  and  people  of  the  United  States  and 
Great  Britain,"  and  "  moi-e  especially  betweeti  Her  Majesty's  possessions  in 
North  America  and  the  United  States,  in  such  a  manner  as  to  render  e 
same  reciprocally  beneficial  and  satisfactory." 

The  assent  of  Congress  was  procured  on  this  understanding,  and  it  was 
substantially  a<lmitted  on  both  sides  that  no  commercial  arrangement  can  be 
perinaneiitlv  advantageous  to  one  party  without  being  so  to  both;  that  the 
basis  of  virtual  if  not  of  literal  reciprocity,  is  tho  only  solid  ground  of 


u 

iHternatioii.il  rcliitions,  and  that  the  incrcaseil  prosperity  of  one  of  the  family  of 
nations  only  otibrs  an  enlarged  market  for  the  industry,  and  an  expanded  field 
for  the  coniinorco  of  o\ery  other. 

The  treaty  was  conceived  in  the  theories  of  free  trade,  and  in  harmony 
with  the  projjioss  and  civilization  of  the  ago.  It  was  a  stop  forward  in  polit- 
icjil  science.  American  legislation  had  been  characterized  by  an  exti-aordinary 
liberality  to  foreign  neighbors,  pli  cing  their  lines  of  transpoi-tation  upon  an 
equality  with  our  own,  and  their  merchants  upon  an  equality  with  our  own  in 
receiving  foreign  merchandise  in  bond.  We  conceded  commercial  freedom 
upon  h11  their  products  of  agriculture,  the  forest,  the  mine,  and  they  ha>e 
either  closed  their  markets  against  the  chief  productions  we  could  sell  to  them 
or  exacted  a  large  duty  on  admission  into  their  markets. 

From  time  to  time  the  Canadian  duties  have  been  increased       ,       ,    ,      „, 

Anniinl    chanffC* 

since  the  ratification  of  the  treaty,  and  durinc;  the  last  five    ?."■'  .''"■'•,"i"<«^  a"- 

•'  o  ties  lu  CauuUii  t*- 

years  the  following  duties  have  been  exacted  on  the  declared    ''iiTn. 
value  of  various  chief  articles  of  consumption : 


1855 

Molasses 16 

Sugar,  refined 32 

Do.  other 27)^  ... 

Boots  and  shoos  12)-^  ... 

Ilarnesri i2}4  ... 

Ccitton  goods VlQ  ... 

Iron  goods 1234  ... 

Silk  goods ]2i|   ... 

Wool  goods I23I  ... 


185«                 1857 

1868 

1859 

11        ....    11 

....   18 

....  30 

28       ....  26 

....  2ii}4 

....  40 

20       ....   17>^ 

....  21 

....  30 

U}^,   ....  20 

....  21 

....   25 

17       ....  20 

....  21 

....  25 

131^  ....   15 

....   15 

....  20 

)H34   ....   15 

....   16 

....  20 

131^  ....   15 

....   17 

....  20 

14       ....  15 

....   18 

....  20 

Every  year  a  new  tariff  hjis  been  enacted,  and  each  of  them  has  inflicted 
higher  duties  upon  the  chief  productions  of  American  labor.  These  duties 
are  so  adjusted  as  to  fall  most  heu  ily  upon  the  products  of  our  citizens. 

The  tariff  of  1859  was  avowedly  bused  upon  an  isolating 

.  ■  T  '  1  1  1  Tiiriir  intended  U) 

and  exclusive  policy.     It  was  supported  on  this  ground,  alike    exclude  the  msa- 

...    I  »     ,  ..'"..„  ufactures  and  com- 

by  ministerial  oigius  of  the  presy,  by  petitions  in  its  favor,  merce  oi  the  United 
and  by  mcnibers  of  the  colonial  Parliament  After  securing 
our  free  markets  for  all  Canadian  productions,  its  advocates  argued  that  it 
was  the  interest  of  Canaflians  to  become  independent  of  all  other  countries, 
and  to  employ  their  own  ships  and  their  own  people;  thus  keeping  in  the 
country  all  that  is  now  paid  to  the  United  States.  They  can  find  no  justifi- 
cation lor  the  annual  increase  in  their  rates  of  tariflf)  in  the  assertion  that  the 
present  rates  do  not  exceed  our  own.  When  the  treaty  was  ratified  our  tariff 
exceeded  theirs,  and  the  concession  given  to  them  was  not  an  equality  of 
tariffs,  but  an  interchange  of  produce  of  both  countries,  and  certain  privileges 
in  navigation,  while  a  liberal  policy  towards  our  manufactures  was  promised 
and  had  been  adopted,  thus  placing  the  commerce  and  navigation  of  the  two 


I 


II 


t'Hj 


Public  opJDion  in 
Canada. 


19 

countries  upon  "  terms  reciprocally  beneficial  and  satisfactory,"  although  we 
have  made  large  reductions  in  our  tariff  since  the  treaty.  Canada  has  deter- 
mined to  free  lierself  from  the  difliculties  of  her  geographical  position,  and 
the  British  government  was  compelled  to  secure  our  free  markets  to  prevent 
rebellion.  This  was  secured  through  menaces  and  vomises  of  liberality  to 
"  manufactured  goods."  Justice  to  our  people  for  the  privileges  granted  by 
the  treaty,  demanded  that  future  Canadian  legislation  should  conform  to  the 
letter  and  spirit  of  the  treaty,  and  that  Canadian  enactments  should  be  in  the 
direction  of  a  more  free  intercouree  between  the  two  countries.  If  it  bo  true 
that  the  Canfulian  government  has  a  right  to  increase  its  taxes  upon  our 
industry,  as  it  has  done  almost  to  the  exclusion  of  our  manufactures,  because 
no  stipulation  against  this  course  was  inserted  in  the  treaty,  then  it  haslj 
right  to  put  an  embargo  (for  a  prohibitory  duty  amounts  to  an  end^argo) 
upon  all  articles  not  enumerated  in  the  treaty,  and  there  could  bo  no  check  to 
its  aggressions. 

I  believe  that  the  Canadian  people  do  not  feel  easy  under 
their  recent  leginlation  affecting  this  country ;  and  many  of 
their  public  men,  and  some  public  journals,  speak  of  it  as  furnishing  just 
grounds  to  the  United  States  for  anr  illing  the  treaty.  The  Canadians  rely 
more  upon  American  foibearauco,  under  the  violations  of  the  spirit  of  the 
treaty  by  colonial  legislation,  than  upon  any  omission  in  the  treaty  to  provide 
against  such  wrong. 

The  Boards  of  Trade  in  th'3  chief  cities  of  Canada  West 

Opiuinn  of  Cnna-  •        i      /.     i  t  -v   ■ 

(liau     UoarJs    of    complamcd  of  the  Canadian  tarift  m  such  representations  as 

Trade.  i        .  n        •  it  •  •  «  •    •  i 

the  toilowmg:  "  Your  petitioners  are  of  opinion,  that  so 
uncalled  for  and  unwise  a  scheme  is  calculated  to  affect  the  existing  pleasant 
commercial  relationship  between  Canada  and  the  United  States,  in  the  work- 
ing of  the  Reci2)rocity  Treaty;  the  great  advantage  of  which  to  this  province 
is  well  known  to  your  honorable  House,  inasmuch  as  the  proposed  policy  of 
the  Inspector  General  practically  shuts  the  door  to  the  admission  into  Cana- 
da of  the  leading  articles  of  commerce  hitherto  purchased  in  the  great  mar- 
ket of  the  United  States,  and  forces  Uppei'  Canada  to  import  via  the  St. 
Lawrence,  or  otherwise  pay  an  enormous  increase  of  duty." 

Deficiency  of  Ca-  When  the  tiu-iff  was  under  discussion  in  the  Provincial 
cause"  o7t«xa" ion  Parliament,  a  deficiency  of  $4,000,000  (greatly  exceeding 
on  our  products.  i]^q  rcveuue  of  that  year)  was  officially  announced.  This 
deficiency  and  the  consequent  increase  of  taxation  on  American  manufactures, 
arose,  it  is  asserted  by  the  organs  of  the  government,  from  exjienditures  in 
carrying  out  their  system  of  internal  improvements.  That  a  large  amount 
has  been  thus  expended,  is  shown  by  the  following  quotation  from  the  report 
of  the  select  committea  appointed  in  1858  by  the  Legislative  Assembly  of 
Canada,  to  enquire  into  the  course  of  trade  between  the  different  Atlantic 


V 

i 


I 


18 


icy  of 


ports  in  America  and  Groat  Britain.  "Tho  public  debt  of  Canada  has 
incrcjisod  from  year  to  year  to  about  fifty  millions  of  dollars;  twenty-fivo 
millions  of  which  have  been  created  since  1853,  principally  in  tho  construc- 
tion of  railways,  yielding  no  income."     (See  Public  Accounts,  1857,  p.  223.) 

Countless  trains  of  ftirs  are  now  daily  djisbing  along  those  railroads,  from 
tho  sea-board  towards  tho  Rocky  Mountains,  competing,  without  rcijard  to 
n  munevation,  for  the  commerce  of  tho  great  valleys  of  the  Lakes  and  the 
Mis8issip|)i. 

Tho  railroads  and  canals  of  Canada  were  alike  constructed  Hniinmds  and 
for  the  express  purpose  of  extending  political  and  commer-  TOnsiriictcd  uT'v. 
ciiJ  power,  by  the  diversion  of  the  trade  of  tho  great  interior  ^- «"■"'"*'''=•'• 
of  our  country,  through  the  valley  of  the  St.  Lawrence,  and  the  Canadian 
routes  of  transportation;  thereby  advancing  the  prosperity  of  the  colony  and 
increasing  British  power.  They  were  undertaken  by  the  government,  and 
were  mainly  dependent  upon  subsidies  and  municipal  bonds,  and  the  object 
of  their  managers  has  hitherto  been  to  secure  the  largest  amount  of  traffic  to 
the  roads,  instead  of  the  largest  dividends  to  tho  stockholders. 

This  extended  system  of  internal  improvements  was  brought  into  active 
life  by  tho  ratification  of  tho  Reciprocity  Treaty,  through  which  Canada  waa 
enabled  to  onen  a  crrain  trade  between  tho  great  West  and  the  Eastern  States. 
To  control  it,  she  plunged  into  extraordinary  expenditures  ibr  an  extended 
railroad  and  carrying  syst'^m.  Increiised  taxation  was  the  consequence,  and 
additional  duties  were  imposed  upon  all  manutactured  articles,  and  upon 
many  others  not  enumerated  in  tho  free  list  of  the  treaty. 

The  Canadians  attempt  justification  of  these  impositions      oniciai  avowal  of 
by  their  public  necessities.     Whence  arose  their  necessities  ?    Canadian  policy. 
Did  they  not  originate  in  a  desire  to  abuse  our  concessions  by  strongthening 
their  hands  in  grasping  tho  carrying  business  of  tho  United  States  ? 

Their  Minister  of  Finance,  Mr.  Gait,  in  a  .sport  recently  Amount expenu- 
issued  by  him  in  England,  in  support  of  a  Canadian  minis-  control  ^oar'^om- 
terial  scheme,  admits  the  insufficiency  of  the  commerce  of  ■""■^<=®- 
Canada  to  support  her  public  works;  complaining  that,  whilst  possessing 
"  tho  most  magnificent  canals  in  the  world,"  she  is  "  without  any  trade  to 
support  them  except  her  own ;"  and  adding  that  tho  canals  of  Canada  hav- 
ing failed  to  divert  trade  from  the  channels  it  had  already  formed,  a  system 
of  railroads  had  also  been  constructed  for  the  purpose  of  competing  with 
American  interests.  He  then  proceeds  to  state  that  after  deducting  a  sinking 
fund  for  tho  redemption  of  the  Imperial  guaranteed  loan,  the  direct  public 
debt  of  the  province  amounts  to  £8,884,672,  or  $43,001,812;  adding  that 
of  this  sum,  debts  incurred  in  consequence  cf  tho  canals  and  other  works 
connected  with  the  navigation  of  the  St.  Lawrence,  and  railway  advances, 


S 

S 


14 


furnish  £8,861,400,  leaving  only  £22,272,  or  $107,796,  as  tho  totiil  direct 
debt  of  Canada  made  for  any  ollior  purposes. 

CnnB.ia  taxes  our  To  mak.i  up  the  doficioncy  caused  by  these  speculative 
''ublic"^v!.'rk^'c<In-  cxponditurcs,  Canada  now  seeks  to  make  our  merchants 
utructcdiigiiiuKtus.  j^^j  manufacturers  who  have  been  most  damaged  by  tho 
diversion  of  Western  trade  to  Canadian  cities  and  transportation  loutes,  pay 
for  her  non-rcnumerativo  carrying  system.  This  whole  modern  movement 
of  Canadian  or  British  policy  in  transportation  is  artificial,  unnatural,  and 
against  the  laws  of  trade,  climate  and  geography — in  violation  of  the  spirit 
of  international  intercourse,  as  mutually  recognized  and  sanctioned  by  tho 
Reciprocity  Treaty.  It  cannot  last,  even  if  Congress  should  refuse  to  protect 
our  commerce  on  the  inland  seas.  The  transit  lines  of  freight  and  passengere 
across  this  continent  to  the  ocean  may  be  deflected  for  a  time  by  disturbing 
causes,  but  cannot  be  permanently  changed.  They  are  goveined  by  laws  as 
imperative  as  the  natural  laws  which  govern  the  flow  of  our  rivers  in  their 
course  to  the  ocean. 

Besides  establishing  a  system  of  ad  valorem  duties  levied  in  such  a  manner 
as  to  discriminate  against  the  commercial  and  shipping  interests  of  United 
States,  the  duties  on  our  matmfactures  have  been  increased,  by  the  tariff  of 
1859,  to  an  almost  prohibitory  extent;  and  its  authors  must  have  known  that 
if  such  duties  had  existed  or  been  expected  at  the  time  when  the  treaty  was 
made,  it  could  never  have  obtained  the  assent  of  Congress.  The  letter  of 
Sir  H.  L.  Bulwer,  from  which  I  have  already  qnoted,  did  not  close  with  a 
mere  statement  of  the  liberal  commercial  policy  already  pursued  towards  the 
manufactures  of  the  United  States,  but  alleged  upon  the  official  authoi'ity  of 
the  Canadian  government  that  if  the  natural  product  of  tho  Canadas  should 
be  admitted  duty  free,  they  would  be  "willincf  to  carry  out  still  further''''  the 
same  policy ;  adding,  as  a  thi'cat,  that  if  we  refused  to  comply  with  the  ofibrs 
made  to  us,  "The  Canadian  government  and  legislatures  are  likely  forthwith 
to  take  certain  measures,  which  both  in  themselves  and  their  consequences, 
will  effect  a  considerable  change  in  the  commercial  intercourse  between  the 
Canadas  and  the  United  Suites." 

We  accepted  the  offer,  made  the  desired  and  fiiendly  concessions,  and 
trusting  in  the  assertions  unequi\ocally  made,  tho  American  authors  of  tho 
treaty  did  not  stop  to  weigh  with  miserly  precision  the  exact  balance  of  profits 
to  be  made  and  advantages  to  be  given,  or  the  loss  and  gain  in  our  revenue ; 
but  the  "considerable  changes  in  our  commercial  intercourse,"  and  also  in  our 
revenue,  have  been  indeed  the  unfortunate  consequence  of  our  hberality. 

The  United  Stales  and  Canada  present  tho  anomalous 

Anomaly  present-  ,        />  ,        i  ■  .  T 

ed  here  ii'i  the  col-    spoctaclo  of  two  bordcr  uatious  With  an  array  of  custom 

lection  of  revenue     ,  ,i-i  i-ii  •  «. 

by  the  two  coun-    houses  extcndmg  along  their  whole  co-terunnous  frontiere, 
sustained  at  an  expense  to  this  government  greatly  exceeding 


\ 
/ 


triev. 


116 


direct 

Illative 
iclmnts 
by  the 
ea,  pay 
voment 
ral,  and 
io  spirit 
1  by  the 

protect 
ssengere 
stui'bing 

laws  as 

in  their 

L  manner 
f  United 
tariff  of 
own  that 
reaty  was 
letter  of 
se  with  a 
wards  the 
thority  of 
as  should 
ther^^  the 
the  offers 
forthwith 
sequences, 
ween  the 

sions,  and 
ors  of  the 
of  profits 
revenue ; 
so  in  our 
ality. 
momalous 
of  custom 
frontiers, 
exceeding 


/. 


I 


the  revenue  it  collects,  whose  j)rincipal  occupation  is  to  enter  and  register  the 
free  products  of  Canada  on  theii-  way  to  our  free  markets,  while  on  the  oppo- 
site shore,  often  separated  Aom  us  only  by  a  bridge,  a  ferry,  or  a  boundary 
lino,  is  found  an  eipially  extended  cordon  of  Imperial  customs  buildings,  em- 
blazoned with  the  Royal  Arms  of  England,  collecting  largo  re\'eiuies  on  our 
taxed  products,  as  a  tribute  A-om  the  commercial  bondage  beneath  which  the 
unfriendly  legislation  of  Provincial  Parliaments  has  placed  us,  in  exchange  for 
the  conunercial  freedom  we  have  granted  to  the  Canadas.  These  exactions  are 
derisively  justified  on  the  ground  that  no  special  provision  against  them  was 
inserted  in  the  treaty,  although  its  avowed  object  was  to  carry  out  the  [jrinci- 
ple  of  recipiocity,  and  " especially  to  regulate  the  commerce  aiul  navigation 
between  Her  Majesty's  possessions  in  North  Amei'ica  and  the  United  State* 
in  such  manner  as  to  render  the  same  reciprocally  beneficial  and  sjitisfactory." 
In  comparison  with  the  duties  of  1864,  the  duties  levied  incrpaupofdutiei 
by  the  tariff  of  1859  on  many  of  our  manufactures,  such  Jis    <"'  vmious  A^icri- 

"'  •/  Clin    iniintifiirtiireii 

boots  and  shoes,  harness  and  saddlery,  clothing,  wearing  ap-  t^Hiuuiiiin  uuiiis. 
parel,  etc.,  h.'is  been  increased  a  hundred  per  cent. ;  and  in  the  large  chiss  of 
unenumerated  articles,  includini;  leather  and  nearly  all  our  other  manufactures, 
such  as  woollens,  cotton,  tobacco,  printed  handbills,  checks,  etc.,  hats,  house- . 
hold  furniture,  glass,  axes,  edge  tools,  fire-arms,  agiioultural  implement'',  nails, 
etc.,  other  hardware,  stoves  and  castings,  upholstery,  carriages,  medicines,  India 
rubber  goods,  musical  instruments,  soap  and  candles,  stiirch,  triuiks,  manufac- 
tures of  brass,  copper,  lead  and  tin,  earthenware,  paints  and  varnish,  except 
for  use  of  ships,  manufactures  of  marble,  etc.,  etc.,  the  duty  has  been  increased 
sixty-two  and  a  half  per  cent.,  or  upwards,  while  on  the  distillations  of  grain 
the  increase  has  been  a  hundred  and  twenty-five  per  cent.  (See  Appendix 
No.  5.) 

The  motives  actuating  the  enactment  of  the  present  tariff 
are  of  less  moment  than  its  results,  and  although  no  duties  fiKtmf*  injurioua- 
avowedly  discrimmating  are  levied  on  American  goods,  the 
influence  of  the  Provincial  tariff  produces  the  same  effect,  for  the  manufac- 
tures most  readily  adopted  by  Canada  must  be  like  our  own.  The  climate, 
price  of  materials,  interest  of  money,  wages  of  labor,  and  the  various  causes 
determining  the  kind  and  prices  of  manufactures  on  both  sides  of  the  fron- 
tier, are  neaily  identical  when  no  legislation  intervenes  to  arrest  or  alter  the 
laws  of  trade.  It  is  as  easy  to  transplant  manufactures  to  Canada,  as  from 
one  Suite  to  another.  Master  manufacturers  and  workmen  already  skillful  in 
the  special  pi.rsuits  of  their  industry,  together  with  the  tools  and  machinery 
adapted  for  their  purposes,  can  go  to  Canada  in  a  few  hours.  Well-known 
establishments  originating  in  this  way  were  already  transplanted  under  the 
influence  of  the  high  tariffs  of  1858  and  1859,  and  the  tendewcy  of  these 
tariffs  is  towards  a  virtual  prohibition  of  our  manufactures,  pithough  Canada 


16 


will  still  continue  to  import,  as  wo  do,  from  Europe  and  Asia,  commodities  re- 
quiring (such  skill  as  wo  have  not  attained,  materials  not  readily  accessiljlo  to 
us,  or  the  products  of  cheaper  labor  than  wo  possess.  The  usual  policy  of 
Canada  has  also  been  to  encourage  manufactures  by  admitting  their  mnit^riaLi 
raw  or  partially  manufactured,  either  free  or  at  a  low  duty. 

Violation  of  trea-  Viewed  Hs  a  question  of  national  integrity,  tho  conduc«  of 
♦y-  the  Cnnailian  Parliament,  in  thus  taxing  the  products  of  Amer- 

ican industi-y  almost  to  their  exclusion  from  the  province,  must  be  pronounced 
to  be  a  violation  not  only  of  tho  letter  and  spirit  of  the  treaty,  but  of  the 
amity  and  good  faith  in  which  it  was  conceived,  and  without  which  all  inter- 
national obligations  are  una\  ailing. 

Piirerentinidutica  '^^^  retrogiado  policy  developed  by  tho  Canadian  tariffs 
agaiuHt  our  Hhip-    gju^jg  ^jjg  rat  ficatiou  of  the  treaty  is  not  confined  in  its  action 

perK,    forwaruora  •' 

and  morchaiiu.        ^q  American  manufactures.     With  duties  piactically  difl'eren- 

tial,  through  a  change  in  the  valuation,  she  has  endeavored  to  assess  the 

business  of  our  shippers,  forwarders  and  merchants,  by  diverting  trade  in  tea, 

coffee,  siigar,  wine,  and  all  other  articles  of  foreign  j)roduction,  but  08j)ecially 

those  of  tropical  origin,  from  New  York,  Boston,  Philadelphia,  and  other 

Atlaatic  cities  of  the  north  to  Montreal,  choosing  a  long  and  circuitous  route 

OaifH  Report,    to  the  richcst  and  most  progressive  portions  of  her  territory, 

made'to favor  Brft^  oudeavoring  thus  to  draw  her  comnieice  from  all  parts  of  the 
iBii  BhipperB.  ^^j.]j^  jjI^jj^  ^j^g  ^.j^gj_  jjjj^  ^^  jjgj.  fr(,„tjer^  instead  of  takmg 

the  shortest  course  from  the  Atlantic  across  the  United  Slates.  The  avowed 
object  in  changing  specific  duties  to  ad  valorem  was  commercial  hostility. 
(See  Note  at  end  of  this  Report  from  Finance  Minister  Gait.) 

Abu«eofourbon-  The  law9  by  which  the  passngo  of  foreign  productions 
ded  systera.  through  our  country  in  bond  was  permitted,  were  an  essen- 

tial part  of  the  system  of  reciprocal  benefits  intended  to  develop  harmoni- 
ously tho  natural  advantages  of  each  country.  They  tended  to  reconcile  our 
people  to  tho  inequalities  it  imposed  on  us.  They  vested  in  tho  financial 
oiBcer  of  the  government  a  power  hitherto  exercised  in  tho  most  liberal  man- 
ner towards  the  railroads  and  carrying  lines  of  Canada,  in  permitting  alike 
the  exportation  of  Canada  and  re- importation  to  the  United  States  of  foreign 
merchandise  in  bond,  and  merchandise  of  American  origin.  Upon  this  idea 
of  being  the  carriers  for  us  depend  the  hopes  of  making  profitable  their  in- 
vestments in  railroads  and  canals.  Their  public  works  wera  constructed  as 
our  carriers,  not  their's. 

Canada  now  endeavors  to  deprive  us  of  all  the  benefits  of 
•ntfai  duties  adop-  this  systcm  of  levying  duties  on  the  value  of  goods  at  the 
t«d  by  ana  place  of  purchase.    The  people  of  Western  Canada  were 

accustomed  to  buy  their  wines,  spirits,  groceries,  and  East  and  West  India 
produce^  besides  many  other  commodities,  at  New  York,  Boston  or  Montreal; 


I 


17 


tlio  former  system  lulmiftiiig  American  cities  to  coinpotition,  tbe  duticH  hiiv- 
inoj  boon  specific  and  levied  on  the  weight,  measure  or  nuinher  of  tlio  articles 
wherever  they  wore  purchased.  Thus  no  greater  duty  was  charged  on  im- 
ports via  Boston  or  New  Yorii  to  Toronto  or  Hamihon  than  via  tlie  St.  Law- 
re  ice  to  Montreal.  The  j»rescnt  system  forces  the  people  of  (Canada  to  dis- 
continue tlieir  business  connections  with  our  mercha  its  and  buy  from  tho 
Montreal  or  Quebec  importer. 

Thus  the  productions  of  China,  Brazil,  or  Cuba,  if  brought  to  Canada  via 
the  St.  Lawrence,  will  pay  duty  only  on  their  value  in  the  country  of  their 
origin,  but  if  purchased  in  our  Atlantic  cities  must  pay  duty  on  that  value 
increased  by  interest  and  freight  over  the  ocean,  and  the  various  other  ex- 
penses and  cliarges  of  the  insurer,  shipper  and  merchant.  This  is  not  only 
legislation  against  our  carriers  but  against  all  our  mercantile  interests.  The 
"increase  of  duty"  has  been  carefully  estimated  to  be  twenty-tive  jier  cent, 
on  goods  imported  into  the  United  States  and  thence  into  Canada  in  exc&sa 
of  the  duties  levied  via  Montreal.  The  distance  from  Cul  a  to  Toronto  via 
the  St.  Lawrence  (a  river  frozen  lialf  the  year)  is  about  three  times  as  great 
as  through  the  United  States.  Thus  Canada  vainly  strives  to  coiujuer  the 
laws  of  arithmetic,  of  climate  and  geography. 

This  legislation  occurred  at  a  time  when,  without  asking 
for  any  eqiii\a]ent,  we  had  reduced  our  duties  on  Canadian  treiityViion  Cana- 
manufactures  twt^nty  per  cent.  Before  this,  desirous  of  ren-  '"' 
dering  "  our  commercial  relations  reciprocally  beneficial  and  satisfjictc )ry,''  we 
had  conferred  upon  Canada  benefits  shared  by  all  classes  of  her  people.  We 
gave  to  her  farmers  highly  remunerative  prices,  and  brought  their  lands  and 
producti<)n3  upon  an  equality  with  our  own,  and  thus  greatly  increased  th<i 
value  of  their  homesteads.  Through  their  agriculfv.re  wo  aided  e\  ery  branch 
of  their  industrial  occupations,  though  wo  there'j*'  .'eft  the  most  important 
points  of  our  trade  in  the  hands  of  those  among  wv.jm  hostile  traditions  an; 
not  yet  wholly  extinct,  and  whose  minds  are  liable,  on  occasions  of  pecuniary 
pressure,  to  be  swayed  by  theories  petty  ir  their  nature  and  opposed  to  their 
intei'ests  and  our  own. 

All  the  consequences  of  the  high  tariffs  of  Cnnada  cannot 
yet  be  thoroughly  shown  by  the  governmentJiI  statisticij  of  ufac'ture*  in"  c^a- 
oither  country.  The  minute  ebb  and  flow  of  commerce  from 
one  year  to  another  year  cannot  show  the  full  effect  of  these  exchisive  laws. 
Manufactures  are  chiefly  represented  as  products  of  the  United  States  paying 
duty  in  Canada  in  the  table  already  given,  and  exhibiting  in  this  class  a  de- 
crease from  nearly  eight  millions  in  1856,  to  four  millions  and  a  half  in  1858. 
Manufacturing  establishments,  however,  cannot  be  brought  into  full  ojieration 
in  six  or  twelve  months,  although  the  progress  made  by  Canadians,  under  the 
influence  of  those  tariffs,  towards  supplying  their  own  wants  and  excluding 
2 


18 


f 


U9  forovcr,  has  been  so  greiif,  that  from  a  locomotive  down  to  a  «hoo-j»og» 
abnost  ovory  branch  of  the  nianiifactures  of  tliis  country  is  aheady  kuccohh- 
fully  oonnnenccd.  Montreal,  undor  the  foreinj;  process  of  protei'tion  and 
discriminating  tarifl's,  is  now  rivalinj^  Lowell  and  Lynn  in  almost  every  article 
of  their  manufacture,  and  apjtroaching  our  Atlantic  cities  in  the  magnitud« 
of  her  commerce. 

For  similar  reasons,  the  effect  of  the  tariff  of  1859  on  our  exportationn 
of  foreign  merchandise  to  Caniuia  cannot  be  shown  -.i  the  form  of  statistics. 
Less  than  a  fiscnl  year,  under  the  regulations  of  either  country,  has  elapsed 
since  it  received  the  recpisite  legal  assent.  To  carry  an  order  for  tea  to  China, 
and  allow  time  for  the  return  voyage  to  Canada  via  the  St.  Lawrence,  re- 
quires nearly  a  year.  Importations,  also,  are  frequently  large,  in  anticipation 
of  increjised  duties.  Abundant  crops,  expansion  of  currency,  an  accidentally 
excited  demand  for  breadstutts  in  Europe,  and  other  causes,  might  have  the 
same  temporary  efftMit,  but  a  more  comprehensive  induction  will  phow  the 
folly  of  passive  obedience  and  non-resistance  undor  such  aggressive  enact- 
ments !us  c'.o  only  bo  overcome  by  counteracting  legislation,  including  a  repeal 
of  our  bonded  system  and  a  withdrawal  of  the  privileges  hitherto  lilnirally 
granted  under  laws  permitting  the  transit  of  merchandise,  either  of  American 
or  foreign  origin,  from  the  United  States  through  Canada,  to  be  returned 
asrain  to  this  country. 

The  combined  influence  of  the  treaty  and  our  bonded  sys- 
tem, even  before  the  high  taritls,  was  exceedingly  injurious 
to  the  largest  poition  of  the  North-West.  Its  farmei's  suffer 
from  competition  with  those  of  Canada.  Its  maimfactures, 
useful  in  the  wants  of  Canadian  life,  are  now  excluded ;  and 
in  the  bonded  system  the  whole  trade  in  foreign  goods  on  the  frontier  is  lost 
to  the  United  States,  American  duties  being  exacted  in  all  cases  where  the 
original  package  is  broken ;  and  the  Canadian  purchaser  from  the  frontier 
American  merchant,  would  thus  be  compelled  to  pay  duties  twice  over:  first 
to  the  American,  and  afterwards  to  the  Canadian  government.  The  ordinary 
customer  is  thus  driven,  from  our  stores,  and  so  far  as  the  American  market 
is  yet  used  by  Canadians  for  purchasing; foreign  goods  or  manufactures,  the 
common  supply  of  Canmlian  stores  is  thrown  into  the  hands  of  Canadian 
merchants  who  procure  their  supplies  in  Montreal.  If,  upon  exporting  foreign 
goods  to  Canada  in  leas  quantities  than  the  original  package,  the  duties  were 
returned  to  the  owner,  the  goods,  until  the  recent  increase  in  the  Canadian 
tariff,  would  still  have  been  bought  in  the  Atlantic  ports,  but  they  would 
have  been  sold  to  Americans,  who  would  re-sell  to  the  Canadian  retailer  or 
consumer,  as  they  had  done  in  former  years;  and  our  merchants  on  the 
frontier  would  not  be  debarred,  as  now,  from  a  fair  profit,  by  the  discrimina- 
tion of  our  own  laws  against  them. 


S;/e<iiil  ami  iiiju- 
ri(»us  «tf('('ts  (»f  the 
treaty  iiml  ware- 
liousinj;  sjHtpm  on 
the  iiieroantllo  iii- 
torests  of  our 
nortUern  frontierii. 


19 


An  oxtcnsivo  tiiwlo  Imd  boeii  CHtiiblisliud  in  loJitlior,  alcoliol,  puro  spirits, 
burning  fluid,  boots  mid  shocH,  ciiNtings,  hardware,  clotliing,  iniu-hinery,  cnbi- 
not-waro,  uj)l»ol8tery,  tnusical  instnimunta,  drugs  and  mt'dioinos,  mnnufaoturcn 
of  cotton,  wool  and  tobacco.  On  most  of  ihoso  articles  the  present  duty  in 
proliibitory,  antl  the  trade  is  entirely  destroyed  or  of  trifling  amount. 

Upon  some  articles,  jis  upon  leather,  the  operation  of  the  bonded  system 
on  exporting  to  Caruida,  forms  n  ditl'erential  system  against  our  own  manu- 
factures. We  pay  an  ad  valorem  duty  amounting  to  a  cent  per  pound  on 
imported  hides.  This  duty  not  beitig  collected  of  Canadians  whcjj  exported 
in  bond,  constitutes  an  atlvantjii;e  ove  ■  our  own  tannei-s.  In  following  up 
this  subject,  wo  find  an  illustration  of  Mi  ureful  vigilance  illiberally  exercised 
by  the  Canadian  government  in  all  ca.  jc.  Canada  levies  no  duty  on  hides, 
but  excludes  our  leather  from  her  market  by  a  duty  of  twenty  per  cent., 
making  a  further  discrimination  of  Ave  per  cent,  additioiud  against  the  chief 
articles  manufactured  from  it,  such  as  shoes,  etc.  Thus  the  trade  of  most  of 
our  Atlantic  cities,  and  of  all  our  cities  and  villages  on  the  northerji  frontier, 
feels  keenly  the  loss  of  Canadian  customers,  who  have  almost  totally  de8(?rted 
our  markets,  and  purchase  the  productions  of  their  own  tanneries.  Similar 
results  are  Jilre<idy  cxperiencxd  in  other  departments,  but  such  manufactures 
as  require  the  construction  of  expensive  machinery  will  bo  the  last  to  exhibit 
m  the  eflects  of  these  tarifl's;  and  in  the  years  1858  and   1859  importations 

»  were  made  in  anticipation  of  increased  duties. 

Many  influential  members  of  the  Provincial  Parliament 

.  ,  ,     .  ,  ,        .        .  ,  OpiiiionH  III  Cftn- 

appreciato  the  advantages  their  country  would  enioy  in  gain-    «<ia    upon  actual 

mg  the  market  created  by  34,000,000  of  our  citizens  for  all 

the  protlucts  of  Canadian  industry.     Opinions  favorable  to  actual  reciprocity 

"',  of  commerce  with  us  are  not  uncommon  in  Canada,  especially  in  its  western 

districts.  They  are  held  by  the  many  Canadians  who  realize  the  necessities 
of  their  geographical  position,  and  fejir  the  disastrous  results  of  their  modern 
legislation.  Their  country,  already  too  important  to  be  regarded  either  as  a 
province  or  a  colony,  in  the  old  sense  of  the  wortls,  possesses  a  population 
computed  to  be  nearly  three  millions  in  number. 

Annexation  does  not  possess  many  advocates  on  either  side 
of  the  frontier.     It  was,  no  doubt,  believed  by  the  authoi's  of    f  uit«  expected  from 

'  the  treaty  that  reciprocal  trade  would  remove  the  causes  "^ 

which  render  any  closer  union  desirable,  and  would  perpetuate  alike  interna- 
tional good  will  and  separate  nationality;  presenting  to  the  world  the  sublime 
example  of  two  contiguous  nations  abandoning  suspicion  of  injury  from  each 
other,  and  practicing  in  their  intercoui-se  the  best  principles  professed  in  mod- 
ern civilization.  The  Canadians  have  now  most  of  the  materid  benefits  of 
annexation  to  this  country,  without  any  of  its  taxes;  more  than  that,  they 
impose  taxes  through  their  tirifls  upon  our  tax-paying  people. 


20 


illi' 

•!l  i 


m 


TIjo  stiitoHiimnliko  idciis  i)n!valt!iit  at  tho  titno  whoii  the 
The      Ckiudlitn  ,  ,  ....  I     !•     11 

niiirkcti.  HTf    ipin    troatv  bocaiiio  law,  antioipatinir  tlio  romovai  ot  all  unntHro»- 

to  hII  the  worM  for  ...  .    i  i        ■  .    .  •        . 

the  iirticieH  nuiiioii    mty  restrictions  botweou  twoiuiigiibonnji;  statos,  aru  in  strong 
'***  contrast  with  tho  ivalitios  of  to-day.     Tho  Hritish  provincoH 

aro  achnittod  to  a  special  partici|>atit>n  in  tho  bonetita  arisinjy  from  tho  Ainori- 
ciu\  system  by  an  exemption  in  their  favor,  while  wo  contiuue  to  levy  duty  on 
the  articles  named  in  the  treaty  when  imported  from  other  countries;  but  in 
Canada,  all  these  articles,  with  a  few  nominal  exceptions,  aro  admitted  free  of 
duty  from  every  country  in  tho  world;  and  the  j>rodHct«of  tho  United  Htatos 
onjoy  no  more  advantngo  in  Canada  than  they  would  tlo  if  the  treaty  had 
never  been  made  or  were  now  abrogated.  Thus,  also,  for  tho  articles  enume- 
rated in  the  treaty  and  produced  in  Canada,  the  market  of  tho  United  States 
is  thrown  open  to  all  the  world,  via  Canada  and  the  provinces;  for  no  system 
of  inspection  can  bo  devised  sufticiontly  exact  to  determino  in  what  country 
these  common  productfl  of  the  temjitrato  zono  may  liavo  had  their  origin. 

Tho  following  is  a  schedule  of  the  articles  enumerated  in  the  treaty  and  to 
be  admitted  into  each  country  free  of  duty,  when  the  growth  and  protluce  of 
tho  exporting  country. 

SCHEDULE. 
„  ^  ^  ,     ,.  Grain,  flour  and  broadstufts  of  all  kinds;  animals  of  all 

.''(•hertnlf  of  free 

srticioB  eiiiiincrnt-    kiuds;  flosh,  smokcd  and  salted  moats;  cotton,  wool,  seeds 

ed  lu  tlie  trciitv.  ...  .    ,         .  ,  , 

and  vegetables;  undriotl  fruits,  dried  fruits;  nshof  all  kinds, 
products  of  fish  and  all  other  creatures  living  in  tho  water;  poultry,  eggs, 
hides,  furs,  skins  or  tails  undre.sscd ;  stone  or  marble  in  its  crude  or  unwrought 
state;  slate,  butter,  cheese,  tallow,  lard,  manure,  ores  of  metals  of  all  kinds; 
coal,  pitch,  tar,  turpentine,  ashes;  timber  and  lumber  of  all  kinds,  round, 
hewed  and  sawed,  unmanufactured  in  whole  or  in  part,  firewo(xl,  plants, 
shrubs  and  trees ;  pelts,  wool ;  fish  oil ;  rice,  broom  com  and  bark ;  gypsum, 
ground  and  unground;  hewn  or  wrought  or  unwrought  burr  or  grindstones; 
dyestuffs;  flax,  hemp  and  tow  unmanufacturetl ;  unmanufactured  tobacco. 
Tho  following  is  a  statement  of  the  value  of  the  articles  enumerated  above, 
and  imported  into  each  country  from  the  other  since  the  treaty  came  into 
operation,  to  January  1st,  1859,  without  deducting  for  tho  items  re-expoiled 
to  us.     (For  the  value  of  each  class,  see  Appendix  No.  6.) 

TABLE  D. 

IMPOKTS   INTO   TUB   UNITED   STATES   FROM   CANAD.i. 

1855  $IM7G,093 

1866  17,810,084 

1867  12,812,308 

1868  Il,514.3(i4 

Total $58,613,449 


I 


21 


IMPOKTH    INTO  CANADA    PHOM   TIIR    UNITED   HTATKH. 

i8r>r> $  7.72r..r.fii 

IKrifl   T.llOD.fiM 

iHr.7  H.(i.»2,():»" 

1868   ft.ritiJ.olft 

TotuI $2!»,S  1 1,7(50 

KXfKNH   OK    IMI'OKTH    KIIKK    UNPKIl   TIIK    TIlKATr    IN    KAVOIl   (IV   TANADA. 

IHM  $  H.7:)0,r)r»3 

IHM't    !),!M)|,i;jO 

iKr)7  

less  


4.170.278 

_^f».!l4!),749 

Total !|B28,771,«89 

Tli()  fullowinjif  table  prosentHJi  full  compamtivo  view  of  all  the  importa  !.n<i 
exports  to  ami  from  the  United  StatvH  unci  Canada,  from  Dccoinber  3l8t., 
1840,  to  January  iHt,  1859: 

TABLE  E. 

18M)  1H61  18A-i  18.''>3  18M 

Tmportod  into  Canada    $(i,5!)4,8f)0    8..'t(ir),7C5      8,477,69.3    11,782,147      lo,r).'i.'),097 

Imported  Into U.Statc'8       4,9r)l,159     4,071,644      0,284,621       8,93C,.'(82        8,649,002 

Excess  of  Imports  Into 
Canada 1,64.'{,701     4,294,221       2,193,172      2,845,765        6,684,005 

•  Other    Imports  into 

United  SiatoH 982,083       845,8:J3       1,251,6;{2       1,789,073         1,769,880 

EHtimated  excess  of 
Imports  into  Canada 
from  the  U.  States 
above  Canadian  Im- 
ports into  the  United 
States 661,618     3,448,;i88         941,640      1,056,692        6,114,215 


Imported  into  Canada      $20,828,676 
Imported  into  U.  States 
Excess  of  Imports  into 


Canada 


*  Other  Imports  into 
Unitinl  States 

Estimated  excess  of 
Imports  into  Canada 
from  the  U.  States 
above  Canadian  Im- 
ports into  the  United 
States 


1866 

I8S6 

18AT 

1858 

0,828,676 

22,704,509 

20,224,650 

15,63.5,566 

16,737,277 

17,979,753 

13,206,436 

11,930,094 

4,091,399 

4.724,756 

7,018,214 

3,705,471 

3,265,013 

2,238,900 

1,556,206 

1,443,044 

826.386  2,485,856 


6,462,009 


2,262,427 


*  These  amnuntH  are  named  In  the  stntistics  publinhed  under  the  sanction  of  the  Canadian  gorera- 
nient  aH  ri'tiirned  not  reported  at  inland  purtH  in  Canada,  and  it  may  be  inferred  were  chiefly  sent  to 
the  United  States. 


■ 


!i 


i 


I't'i; 


m 


22 

Alllit>ii;^li  till'  (>x|ioi-tM  iiiid   iinitoiti  ti>  aiul  fioiii  diireriMit 


r\|.<irti.     nro      oountritW    UPO    fJCIK)>lllly  COIIlH't    ill(l()X«H    lo  llu)  VIlllU'  ul'    tllOlf 


Voitilfidl  Import* 
Aii<l  t*\|Mirtii  nrr 
■Kit  I'lirriTt  tf  «t«  iif 

Uir  tra.i«  iiii«»..ii    trutlo,  tliy  nrofntliiiir  tabic <lti«»  not  prcHont  in  h  true  liirlit  tho 

I'lhli'il   HUI<'»  mill  '  I  ."»  I  " 

''»'""'»•  ncliiiil  comlltion  of  our  tnitlo  with  ('an.uiii.     Tlio  NtatiKtii-H 

ot'  tiiat  tradt*  havu  orcaft!<l  many  oiTon«^ouH  inipivsnionH.  Tho  pocnhaiitios  of 
tho  oaso,  njiait  from  thotliNlurliiiii;  intluonccf*  of  jtohtical  and  icjritdHlivo  cauHoM, 
urine  from  her  j^ooj^raphical  position.  VVhilo,  for  n  part  of  tho  yoiir,  nho 
portHoHWjH  nicann  of  communicaling  with  the  rtwt  of  tlio  world  hy  tho  St. 
Lawronco,  who  iw  so  far  incltmod  by  tho  lTnit«'<l  i^tatoM,  tliat  a  hno  ilrawn  from 
tho  northorn  cxtromitios  of  Maino  ami  VViM<'onHin  would  paiw  to  tho  north- 
ward of  (iuobci',  and  cut  (ttf,  with  tho  oxcoption  of  a  few  unimportant  coun- 
tiew,  tho  whole  irdiabitod  territory  of  Canada,  IwHidos  vast  acroM  of  fortilo  land 
yot  unexplored  (see  Report  on  Crown  Lands,  part  II,  1H57).  On  tho  north 
ttho  i«  hemmed  in  by  tin!  desert  wilderness  of  tho  frigid  zone,  and  on  tho  east, 
south  and  west  by  the  territory  of  tho  United  States. 
Rpuciniipuisiatinn  '^''"  <^u'''''">t  <>f  trade  cannot  \>e  at  once  diverted,  but  it  has 
•nM^'wiii  .'.gHinl't  ^*'*''"  al''»^n<ly  shown  that  tho  lej,'islation  of  Canailn  is  intended 
til..  rnrryiiiK  int..r-    j„  j|j^.^,,.j  f,  in  tho  Uuitod  States  tho  eomniorcial  advantaifes 

eniH  of  tho   Uuited  " 

*'"''''•  naturally  resultiii)^  from  our  relative  geographical  position. 

The  means  through  which  it  is  hoped  this  result  will  bo  attained  are  the  <lif- 
fcrcntial  duties,  heretofore  explained,  in  favor  of  tho  St.  Lawrence,  and  tho 
change  of  tho  system  of  specific  duties,  under  which  go(MlH  taken  into  tho 
western  or  any  other  part  of  tho  province  from  tho  United  States  heretofore 
bore  only  tho  same  duties  as  if  imj)orted  via  the  St.  Lawrence.  A  reservation 
is  also  made  by  which  the  Governor  of  Canada  (see  Statutes  of  Cana<la,  cap. 
17,  sec.  24,  2),  through  a  departmental  order,  may  quietly  permit  goods  to 
be  imported  through  any  part  of  tho  United  States  uniler  such  regulations 
as  ho  may  choose,  at  the  same  valuation  as  if  they  were  imported  directly 
from  the  country  of  their  origin — a  privilege  not  tho  less  likely  to  bo  exercised 
in  favor  of  tho  Grand  Trunk  Railroad,  a  foreign  institution 

Groat  Britain  ili«-  .  .  ,,  ,  ,  .,  ,  i  i  /.     i 

criminntea  In  iicr  ou  American  SOU,  agamst  tno  railroads  and  canals  of  tho 
our  citicH.  rniiromis  Uuitfid  Statos,  bccauso  cortaiu  importations  via  Portland  are 
anc  pro  ut  h.  alrojuly  admitted  into  Great  Britain  by  the  British  Govern- 

ment at  a  lower  duty  than  from  any  other  part  of  the  United  States.  (See 
22d  and  23d  Victoria,  cap.  37,  sec.  VIL) 

c'liisHincation  of  A  simple  and  compendious  method  of  considering  the 
tZ'fZi  '.mt!.mi  ♦-'xpoits  of  Canada  is  atf'orded  by  chusifying  them  as  the 
course  of  trade.  products  of  the  mine,  the  sea,  the  forest,  as  animals  and  their 
productions,  agricultural  produce  and  manufactures.  The  comparative  amount 
taken  by  the  United  States  and  each  other  country  annually  since  the  treaty 
(see  Appendix  No.  7),  proves  beyond  controversy  the  increasing  value  of  our 


f 


• 


I 


23 


« 


of  our 


nmrktttH  to  Canada  in  n<im|mriH<in  with  tlioHo  of  Great  nritaiit  ami  all  other 
<«)uiitik'«. 

Tlio  pi'inliK'tK  of  \\m  inirui  inuHt  hmoine  or.  l>otli  hhIch  a  rn|ii<lly  iiicrenHin^ 
cImw  of  our  uxeliaii^i'H.  llitlK'*'to  tliu  balunou  Iiuh  boun  imicli  in  niir  liivor. 
KxtotixiNo  roi^ioiis,  licit  in  mineral  wealth,  cxIhI  in  Canaihi  West,  hiil  lint  ^eo- 
lo^ieal  fiH'inatioiiN  are  deHtituti)  of  coal;  and  iia  thu  t'oreHlM  aro  eluari;  I  away  an 
inenlculalil))  atnoimt  of  fuel  froiti  tlio  liniitleM  coal  field.s  on  tho  Noiit!i  xhUi  of 
Lnko  Erie,  will  hu  re«|uired  in  hur  northern  eliinatu.  'J'liu  coal  of  Ohio, 
nortliern  V'ir^^iniii  and  I'onnHvIvania,  Hupiilios  advanta^oouNly  the  nieaim  of 
unidtinj;  th.  orcis  of  Caiuula  VVckI.  It  will  nt^ver  lie  politic  nor  will  it  Ncarcoly 
l»e  |)owtil)lo  for  the  ji;overiinieiit  of  Canada  aj^ain  to  tax  thin  iiidinjiciiwiMo 
nect'HHiiry  of  lifo;  and  if  the  treaty  wore  ahro^ated,  Canada  would  yot  b« 
(»in|iellu<l  to  buy  it  from  us  in  incroaHin^  <(uantiticH.  Itx  ahundanco  in  our 
territory  and  itM  ahHonee  in  the  jfeolo^iv'al  formations  of  Canada  \Ve>t,  exliihit 
in  the  ^rctalcNt  decree  u  natural  a<la|)latiou  to  the  syHtom  of  reciprocal  lienetit«. 
On  thu  Atlantic  coaHt  thu  coal  from  thu  inincH  of  the  maritime  provincoH 
«flbclB  BcriouH  injury  to  tlioKo  who  have  invented  their  capital  in  the  hound- 
less  mineral  rcsourcew  of  Peiinsylvania,  Maryland  and  Virginia. 

The  produ.'ts  of  the  Canadian  forcHts  nro  brought  into  vigorous  competi- 
tion with  our  own,  and  tho  elfcct  Ih  keenly  felt  by  many  of  our  lumlier-mon, 
who  embarked  in  this  busineHs  fully  confiding  in  tho  belief  that  thu  protective 
Hystom  accorded  to  other  manufacturing  interestw  would  not  bo  withdrawn 
from  this.  Large  investments  wore  iti  many  cases  madu  by  our  lumber-men, 
many  of  whom  havo  In-en  compelled  to  abandon  thoir  businesH  at  a  ruinous 
loHs. 

Tho  Unitc<l  Statofi  were  for  five  jcnrs  before  the  adoption  of  the  treaty,  an 
they  aro  now,  almost  the  only  customers  of  animals  and  tlioir  prothicts  from 
Canada.  Tho  year  1858  afibrds  no  more  than  a  fair  illustration  of  this  fact. 
Wo  then  imported  to  the  value  of  $2,232,308,  being  only  $220,307  less  than 
tho  whole  amount  of  exports  in  this  clii.s8  from  Canada  to  all  countries.  These 
exports  from  Canada  have  increased  nearly  six  fold  since  the  treaty.  The 
older  and  more  closely  settled  regions  of  this  country  afford  to  Canada  &ueh 
a  market  for  the  chief  item  in  this  class — animals  themselves — as  her  geo- 
graphical position,  remote  from  all  other  countries  except  the  thinly  ])eoplod 
provinces,  forbids  her  to  export  j)rotitJibly  elswhere. 

Wheat,  tho  staple  crop  and  chief  export  of  Canada,  was 
not  rendered  free  by  the  treaty,  on  its  admission  mto  tliat  poriid  t..  cnnada 
country.  It  was  made  free  botore  tho  treaty  by  Canadian  tin-re,  an.i  wu»  free 
legislation  for  the  benefit  of  Canadian  millera  and  ship-owners.  "™  "'  ^' 
It  is  exported  into  Canada  in  pursuance  of  tho  great  commercial  law  by 
which,  in  our  time,  the  demand  of  the  Eastern  States  and  for  shipment  to 
various  parts  of  tho  world,  is  supplied  from  the  lich  soil  and  clieap  land  of 


24 

the  Wust.  Much  of  it  is  iimnufactured  in  Citnnda  and  returned  to  the  United 
State.",  free  of  duty ;  nor  cm  the  ordinary  course  of  this  traffic  bo  bettor  illus- 
trated than  by  the  well-known  fact  that  Chiciijvo,  Wilwaukee  and  the  Western 
ports  arc  shippers  to  and  not  receivers  of  grain  from  Canada,  whoso  lajge 
exjiorts  are  freely  transmitted  from  the  eastern  side  of  hor  territory  to  tha 
Americiin  frontiers.  It  is  stated  on  reliable  authority  in  the  provinc  il  public 
journals,  ihat  much  of  their  imported  wheat  is  ground  on  the  Wclland  or 
Lachinc  canal.  After  this  process  it  cr.nnot  be  identified  as  of  American 
origin.  It  is  le.><8  expensive  and  troublesome  to  enter  wheat  as  free  under  the 
treaty  than  to  keep  it  in  bond,  and  to  a  considerable  extent  there  is  littla 
more  d-stinction  as  to  the  origm  of  the  wheat  after  it  has  once  been  taken 
into  Canada,  than  there  is  in  nationality  of  the  mingled  waters  on  which  it 
is  carried  towards  the  ocean. 

Cannrin  ..xpnHs  ^^  Canada  produces  more  wheat  and  flour  than  she  can 
(imiTtiui'ir^iio  iiu-  ^*'*^'  *'"'"  shipments  to  her  are  not  made  for  purposes  of  con- 
P"""'"-  sumption,  but  must  compel  the  return  of  the  same  or  an 

equivalent  quantity  io  us,  chiefly  in  a  inanufactured  condition,  at  the  expenso 
of  the  milling  interests  of  this  country,  or  its  shipment  to  Europe  in  foreign 
vessels  at  the  expense  of  our  American  bottoms. 


m 


if:  n» 

s 


'  )■': 


I 


« 


i 


'.  f  I 


Mi 


Statkmkn 
Flow 
1><J1). 


T  .thowiiu/  the  romparative  value  of  the  ImporL^  a7id  Exports  of  Wheat  and 
into  and  from  Canadafrom  the  year  endintj  January  1,  1850,  to  January  1, 


IFORTB, 

EXPORTS. 

F'.our. 

Wheat.                     Flour. 

2,247   .. 

..  1,072,135  ....   2,743,185 

4.507  .. 

. .      687,180   ....   2,683,.301 

4.9:J7   .. 

..   1,421,825   ....   2,757.510 

4,870  .. 

..   3,090.441   ....  4,248,835 

17,%5  .. 

..   2,098,137  ....   4,796,699 

....   1,(525,7,35  .. 

..  5,928,866   ....   5,801,920 

....      808,737  .. 

..   6.977,H43  ....   0,009,809 

....   l,2(i2.4cS5   .. 

..   2,789,975   ....   4,537.642 

....      763,960  .. 

..  2,355,096  ....   3,065,810 

Wheat 

18.50   113,9.36 

1S5L   294,47j 

18.52   76,9.53 

18.'>3  14,664 

iHbi   138,913 

18.55  1,461,624 

1856 1,694,091 

1857   2,375,638 

1858  1,647,489 

Of  nearly  all  the  articles  named  in  the  treaty,  a  surplus  is  common  to  both 
countiies;  and  wo  have  an  abundant  supply  and  c  surplus  for  cx})ort  of  every 
article  named  in  it. 

Canada  has  no  crop  so  cheap  and  profitable  for  various  manufacturing; 
and  other  [jurposes,  as  the  corn  bought  from  us;  she  admitted  it  like  wheat, 
free,  before  the  treaty. 

For  other  grains — bailey,  rye,  oats,  etc. — we  furnish  for  Canada  the  only 
market  worlhv  of  mention. 

Cana<iian  farinor        "^''^  increase  in  the  profits  of  the  Canadian  farmer  since 
piacodin  ticRiy  .,n    ^]^q  treaty,  is  well  known  on  both  sides  of  .he  frontier.     The 

t*i|ufli  1 1  \     ^\  1 1  ii    (til  r  '' 

farmer  as  (n  uii.ic    ]nr(re  amount  which  would  have  accrued  to  the  United  States 

of   uiriu    and   jiro-  ^ 

^"<=*»-  in  the  form  of  duties  has  gone  to  his  benefit  in  the  increased 


25 


Cun- 
the 
)f   her 
fore  th« 


value  of  his  products  and  real  astato.  The  production  of  many  articles  has 
been  greatly  .stiinulatod  much  to  his  advantage,  and  their  importations  have 
been  severely  felt  by  our  own  producers  along  all  that  line  of  frontier  through 
which  access  is  naturally  sought  in  an  eastward  coui-se  to  our  cities,  manu- 
facturing districts,  and  the  gre.n,  highway  of  the  world.  A  strong  stinudus 
haa  been  given  by  the  treaty  to  all  the  chief  public  works  of  Canaila,  which 
before  had  signally  failed. 

A  general  dissatisfaction  with  the  treaty  exists?  on  the 
southern  side  of  the  boundary  line,  wherever  its  operation  is  fi».ti„u  with  tue 
perceived,  except  in  those  parts  of  thu  "West  whore  the  Cana-  ™''  ^' 
dian  is  erroneously  regarded  as  an  additional  purchaser  or  consumer,  and 
not,  as  ho  really  is,  a  mere  grain  carrier  in  rival'-y  with  our  own,  or  in  those 
other  parts  of  the  United  States  as  to  which  for  its  own  purposes  the  Cana- 
dian or  British  government  has  made  preferential  laws,  and  to  which  it  has 
given  a  local  prosperity  at  the  expense  of  the  general  welfare  of  this  coimtiy. 

An  investigation  of  the  Canadian  exports  made  frco  by  (jeogrnpi.ioni  din- 
the  treaty,  proves  that  Canada  has  now,  for  many  of  these  "'IV'Jl.^'J^va 'f.j.^j 
products,  no  market  equally  profitable  with  t^iatof  the  United  '"",i,',\!^''[jj,fy 
States,  and  had  no  outlet  for  them  at  all  worthy  of  mention  *'<"''>• 
before  the  treaty,  except  this  country,  where  they  then  contributed  to  the 
revemie.  The  same  examination  wiU  disclose  the  fact  that  most  of  the  lead- 
ing articles  named  in  it  were  imported  into  Canada  free  of  duty  before  the 
treaty.  For  more  than  half  the  year  the  rigor  of  her  climate  debais  her 
from  commercial  exchanges  with  any  countiy  except  the  United  States,  or 
through  our  territory,  preventing  her  during  that  period  from  taking  advan- 
tage of  a  rise  in  the  market.  She  is  placed  in  the  position  of  a  farmer  who 
lias  on\y  one  customer.  This  is  the  political  and  geographical  disad\antage 
sought  to  be  overcome  by  the  Earl  of  Derby  when  he  urges  the  abolition  of 
duties  discriminating  in  favor  of  the  manufactures  of  his  own  country  against 
the  manufactures  of  the  United  States.  It  was  for  this  cause  that  reciprocity 
was  urged  so  strongly  by  Sir  H.  L.  Bulwer,  aud  to  compare  this  argument  and 
these  admissions  with  the  facts  of  experience,  I  again  refer  to  the  testimony 
of  the  select  committee  appointed  by  the  Legislative  Assembly  of  Canada  in 
1858,  by  which  in  reference  to  the  repeal  of  large  discriminating  duties  on 
grain  imported  into  Great  Britain,  it  is  said  (  pp.  4  and  5  of  their  lieport ) : 
"  The  ert'ect  of  this  law  was  to  depreciate  the  value  of  all  articles  grown  or 
produced  in  Canada  twenty  per  cent,  under  the  value  of  like  articles  grown  or 
produced  in  the  United  States,  and  this  difference  in  value  conliimed  up  to 
the  year  1854,  a  period  of  nearly  nine  years." 

The  opinion  of  her  merchants  as  to  the  value  of  our  market,  is  i-ecorded 
in  their  having  exported  to  us  six  times  as  much  wheat  and  flour  as  to  Great 


26 


^ij^ 


m 


f 


'i! 


Thofiillacy  (il'tlie 
Iiiv(M')io<)l  iiiarki't 
nlwnvH  11x111(5  H'" 
valui'. 


Britain  during  tho  four  years  which  elapsed  since  the  (reaty  and  before  Janu- 
ary 1st,  1859. 

Contrary  to  tho  belief  commonly  held  at  the  date  of  tho 
treaty,  tho  Liverpool  market  does  not  determine  tho  standard 
of  value  for  brem'-iiutls  on  this  side  of  tho  Atlantic.  Euro- 
pean prices  are  now  far  from  being  remunerative  to  the  American  producer. 
They  have  seldom  been  ].n-^.tablo  to  us,  since  tho  termination  of  the  Crimean 
war  re-oppnod  tho  Rrssian  granaries,  throw  the  cheap  Russian  serf  into 
close  competition  with  the  American  farmer,  who  can  only  sustain  himself 
by  his  superior  intclligence^and  the  application  of  modern  labor-stwing  im- 
plements tf  agriculture.  Since  tho  speculations  consequent  upon  that  war 
have  ceaseil,  our  exportations  of  grain  and  flour  to  Eurojie  ha\  e  been  insig- 
nificant.; nor  are  they  likely  to  be  of  much  importance  here;ifter  except  from 
the  occasional  and  irregular  demand  caused  by  war  or  famine.  All  tho  wheat 
and  flour  sent  by  us  in  1858  and  '9  to  England,  whore  flour  is  charged  ™ith 
a  duty  of  4^  per  cent.,  or  about  16  cents  a  barrel,  and  a  corresponding  duty 
is  levied  on  grain,  was  only  $1,730,152  in  value,  or  less  than  half  of  $3,666,- 
502,  the  amount  thrown  on  our  market  from  Canada,  notwithstanding  the 
failure  of  her  crop.  The  grain-growing  regions  of  the  North-Wcstern  States 
have  suffered  more  than  other  parts  of  tho  Union  from  a  depression  of  prices 
in  our  Atlantic  cities,  thus  caused  by  the  influx  of  Canadian  products.  A 
temjHirary  cheapness  of  transportation  will  not  compensate  for  reduction  in 
the  value  of  the  grain ;  and  Canada  by  virtually  prohibiting  the  importation 
of  American  manufactures,  prevents  so  far  as  she  is  able  an  increaseil  de- 
mand and  consumption  for  breadstuffs  within  the  limits  of  our  confederacy. 

Natural  ooinnipr-       Thoro  has  not  bceu  a  year  since  the  treaty  when  Canada 
cjai    (iip.Mi(Uiic«   has  not  thrown  upon  our  markets  a  larger  amount  of  her 

of  Canailaiipon  tho  r  » 

Unitcii  States.  productions  than  sho  has  sold  to  ai.y  other  country,  and  to 
all  other  countries  added  together — demonstrating  her  commercial  depen- 
dence upon  the  neighboring  States  when  thwarted  by  no  artificial  cause  or 
restriction.  (Appendix  No.  7.)  The  difference  will  be  yet  more  conspicuously 
and  clearly  shown  by  deducting  tho  products  of  the  forest  from  her  European 
exports.  These  alone  amounted  in  1857  to  more  than  $8,000,000,  or  twice 
as  much  as  was  sent  to  us,  differential  duties  yet  existing  in  Great  Britain  in 
favor  of  colonial  timber.  Struggling  under  these  obstacles  imposed  by  the 
British  and  Canadian  governments,  we  arc  yet  to  Canada  of  more  commer- 
cial value  than  all  other  countries  together,  while  recent  legislation  has  re- 
versed the  natural  law  of  trade  that  a  nation  should  buy  where  it  sells.  Her 
people  sell  to  us  and  are  now  prevented  by  her  taiiffs  from  buying  of  us. 

Hitherto  tho  further  injurious  legislation  of  Canada  is  too  recent  to  have 
fully  exhibited  its  eflfects,  and  an  additional  illtistration  of  her  natural  commer- 
ciiJ  dependence  is  found  also  in  our  exports  to  that  province  (Ajjpeudix 


M 


-U 


^ 


and  to 


cause  or 


27 

No.  8),  showing  that  for  each  of  the  four  years  ending  Dcv-omber  31,  1858, 
the  amount  taken  from  or  through  the  United  States  exceeds  the  Canadian 
imports  from  all  other  countries  unitedly.  It  has  already  been  shown  how 
largo  a  portion  of  them  is  re-exported  to  us,  whilst  the  taxes  on  our  manu- 
factui'cs  and  differential  duties  on  merchandise  of  foreign  origin  passing 
through  the  United  States,  will  effectually  check  tlio  other  classes  of  their 
imports  into  Canada. 

In  the  profits  accruing  from  freight  between  the  two  countries,  the  advan- 
tage since  the  treaty  has  been  in  favor  of  British  shipping,  the  value  of 
exports  and  imports  by  the  vessels  of  each  country  being  regarded  aa  the 
test.  In  the  five  years  ending  June  30, 1854,  the  value  of  domestic  expoils 
to  Canada  in  British  bottoms  was  $12,595,816,  and  in  American  bottoms, 
$16,595,816,  the  preponderance  in  our  favor  being  about  one-third,  whilst  in 
the  five  yeare  since  the  treaty,  and  beginning  with  July  1,  1854,  there  was 
an  excess  against  us  of  nearly  one-half,  the  value  being  $26,330,730  in 
American  vessels,  against  $38,942,652  in  vessels  of  British  nationality.  No 
marked  inequality  exists  in  the  imports  to  the  United  States  by  the  shipping 
of  both  countries,  the  value  carried  by  each  being  $37,223,665  In  American, 
and  $36,528,968  in  foreign  vessels. 

In  this  competition  of  shipping,  American  ship  ownere  run  a  race  in 
fetters.  The  staple  manufacture  of  Canada  has  long  been  that  of  ship-build- 
ing for  exportation.  A  cheap  and  abundant  supply  of  labor  for  this  purpose 
is  obtained  at  Quebec  during  the  long  winter  suspension  of  navigation,  and 
the  value  of  ships  built  there  for  sale  in  foreign  markets  exceeds  by  many 
times  that  of  all  other  manufactured  exports  of  Canada.  This  branch  of 
industry  is  encouraged  by  admitting  all  the  materials  used  in  the  construction, 
rigging  or  equipment  of  ships,  either  at  a  nominal  rate  of  duty  or  entirely 
free,  or  subject  to  a  return  of  duty  to  the  shipbuilder  when  satisfactory  proof 
is  given  that  they  have  been  used  for  this  purpose. 

Canada  grounded  her  hopes  of  future  crreatncss  upon  the      ,^ , 

c  r  o  r  Value  of  free  na- 

possossion  of  the  St.  Lawrence.     The  Western  States  have    y'ff»'i"n  "f  ">«  '^^• 

'  _  I-»wrence    to    the 

considered  it  of  great  advantage  to  themselves,  and  it  was  ignited  statt  ■.. 
said,  when  we  obtained  its  navigation,  that  the  benefits  arising  from  this 
national  privilege  would  more  than  countei balance  any  fancied  injury  or 
wrongs  on  other  interests.  The  British  Minister,  Sir  H.  L.  Bulwer,  after 
pressing  upon  our  attention  the  spirit  evinced  by  Canada  towards  our  manu- 
factures, and  promising  on  behalf  of  the  Canadian  government  to  can-y  a 
libe'al  policy  out  sj'll  further,  presented  the  navigation  of  the  St.  Lawrence, 
with  the  adjoining  canals,  as  a  consideration  to  be  paid  by  that  province  for 
the  free  interchange  of  all  natural  productions  with  us,  and  for  the  navigation 
of  Lake  Michigan.  The  arrangement  of  the  treaty  was  comj)rehen8ive,  and 
included  a  satisfactory  settlement  of  the  perplexities  then  existing  in  regard  to 


ll:n 


I; 


m , , 

,   ill    f> 


I'  ■  i 


i     I 


1    * 


.U.  . 


28 

the  fisheries  along  the  coast  of  the  provinces;  but  for  this  the  maritime  prov- 
inces also  received  a  full  eijuivalent  in  the  opening  of  our  ninrkot  to  their 
fish,  coal  and  other  products. 

The  ilobates  in  Congress  show  the  high  value  placed  by  the  advocates  of 
the  treaty  on  the  use  of  the  St.  Lawrence.  One  honorablo  member  lamented 
that  by  being  debarred  from  it,  the  shipping  of  the  lakes  wjis  compelled  to 
be  idle  ai.d  unproductive  for  about  one-third  of  the  year,  whilst  the  interest 
on  the  capital  thus  invested  was  running  up  to  $250,000  annually.  Another, 
expressing  only  the  general  Vxpectation  of  many  others,  said:  "The  free 
navigation  of  the  St.  Lawrence  is  only  necessary  to  show  us  in  the  fall  of 
every  year  long  lines  of  vessels  seeking  the  Atlantic,  through  Canada,  laden 
with  westLM-n  produce,  and  in  the  spring  making  their  way  back  with  foreign 
wares,  and  with  the  avails  of  profiUible  labor  for  nearly  half  a  year." 

Tile  commerce  of  the  north-western  lakes  is  of  immense  national  import- 
ance, amounting  annually  to  $587,197,320.  (vSee  Report  of  Committee  on 
Commerce  to  House  of  Representatives,  1856,  No.  316,  vol.  3,  page  9.)  More 
than  1000  vessels,  with  an  aggregate  burthen  exceeding  four  hundred  thou- 
sand tons,  are  employed  in  navigating  these  waters,  which  Chief  Justice 
Taney,  in  that  decision  of  the  Supreme  Court  of  the  United  States,  which 
gives  the  lakes  forever  their  international  character,  termed  "  Inland  Seas." 
It  was  believed  that  the  advantages  gained  by  the  navigation  of  the  St.  Law- 
rence would  bear  adequate  proportions  to  the  number  and  value  of  these 
commercial  fleets,  but  the  official  statements  of  Canadian  authorities  show 
that  since  the  treaty  received  the  signature  of  the  President  of  the  United 
States,  nearly  six  years  ago,  no  more  than  forty  American  vessels,  with  a 
burthen  of  only  twelve  thousand  five  hundred  and  fifty  tons,  passed  seaward 
through  the  St.  Lawrence,  and  that  of  these  less  than  half,  or  nineteen  ves- 
sels, with  a  burthen  of  only  five  thousand  four  hundred  and  forty-six  tons, 
have  returned  from  sea.  So  insignificant  has  been  the  foreign  commerce 
expected  by  honorable  members  to  be  developed  in  this  direction,  that  during 
these  six  years  only  twenty-five  of  these  vessels  have  sailed  for  foreign  coun- 
tries, the  other  fifteen  having  gone  to  American  ports. 

It  would  seem  that  the  promised  advantages  from  the  navigation  of  the 
St.  Lawrence  were  more  poetical  than  nautical,  but  the  navigation  of  Lake 
Michigan,  ceded  to  Canada  by  the  treaty,  has  been  so  extensive  that  in  the 
year  1857  one  hundred  and  nine  British  vessels  cleared  from  Chicago  alone; 
thus  depriving  our  own  carriers  of  freight,  by  enabling  others  to  take  the 
produce  of  the  great  grain  growing  regions  through  Canada  to  ports  on  either 
side  of  Lake  Ontario,  or  to  Montreal  and  thence  to  eastern  States,  or  chiefly 
by  British  vessels  to  Europa.  It  is  a  noticeable  fact  in  this  connection,  that 
the  above  is  a  statement  of  the  clearances  from  only  one  port  upon  Lake 
Michigan  of  Canadian  or  British  vessels  for  one  year,  and  they  are  more 


^1!^ 


29 

than  double  the  nuinbor  of  United  States  vessola  that  passed  outwards 
through  tlu!  St.  Lawrence  for  the  last  six  years  since  the  ratification  of  the 
treaty,  and  ijuintuple  the  number  tliat  ever  returned  inward  from  sea. 

Well  might  Lord  Elgin  exchange  congratulations  with  the  British  capital- 
ists in  London,  as  ho  did  in  a  recent  speech,  uj)on  the  advantages  to  bis  coun- 
try arising  from  the  woi-king  of  the  Reciprocity  Treaty  which  ho  signed  at 
Washington,*  when  the  barren  advantages  of  the  free  navigation  of  the  St. 
Lawrence  have  boon  given  in  exchange  for  our  free  markets  to  all  Canadian 
productions,  and  when  the  consequent  increase  of  their  exports  has  ndded 
wealth  to  their  country,  and  operated  in  inverse  ratio  upon  the  prosperity  of 
our  agricultural  and  industrial  classes. 

Although  the  equivalent  gravely  ofl'ered  to  us  by  the  Brit-  commorco  of  thn 
ish  Minister  in  exchange  for  the  valuable  concessions  we  made,    ''""''"*  p'l.vs  moBt  of 

"  rovfiiiii!    of   Cans- 

has  hitherto  been  thus  imimportant  as  regards  the  St.  Law-    <iiau  canals. 

rence  itself,  the  other  part  of  the  consideration,  the  use  of  the  canals,  was 
enjoyed  by  ns  so  freely  before  the  treaty  wijs  in  operation,  that  in  1854  no 
less  than  198  American  vessels  used  the  canals  of  this  river,  and  3,100  vessels 
of  the  same  nationality  used  the  various  canals  of  Canada,  and  paid,  as  now, 
tlie  principal  part  of  the  tolls  collected  thereupon  by  the  government  of  that 
province.  To  close  the  canals  to  our  vessels,  would  not  only  be  an  act  of 
folly  on  the  i)art  of  Canada,  but  would  be  contrary  to  the  objects  for  which 
they  were  constructed.  This  professed  equivalent  to  us  was  itself  the  con- 
summation of  their  long  cherished  project.  The  State  of  New  York  might 
with  more  wisdom  close  the  Erie  canal  against  the  commerce  of  the  other 
States,  for  that  canal  passes  through  the  central  portion  of  the  State  which 
possesses  a  much  larger  population  than  Canada,  creating  an  extensive  local 
tariff  for  its  support,  while  the  canals  of  Canada  are  lateral  and  depend 
almost  entirely  upon  the  commerce  of  the  United  States.  They  were  made 
for  the  purpose  of  diverting  American  commerce,  not  of  facilitating  it.  The 
committee  appointed  by  their  own  Legislative  Assembly  in  1855,  unhesitat- 
ingly affirm  in  their  Report,  p.  3,  that  "the  St.  Lawrence 

°    ,  t-       y    1         •  Cnnailiiin    cnnaU 

c<anals  were  constructed  at  a  large  public  expenditure,  for  the    imiiito'iiMit trade 

...  ,  ,        p     ,      ,„  ^  ,         of  Westcru  SUiteii. 

purpose  of  drawmg  the  trade  ot  the  Western  States  to  the 
ports  of  Montreal  and  Quebec." 


*  Great  Britain  reserved  the  right  of  suspending  the  navigation  of  the  St.  Lawrence 
and  canals  in  Canada  at  hor  pleasure,  and  whenever  she  should  exercise  this  reserved 
right,  then  the  government  of  the  United  States  was  permitted  to  suspend  the  oper- 
ation of  Article  3  of  treaty,  which  contains  the  enumeration  of  free  list  of  nrlide.s  so 
far  as  the  province  of  Canada  is  affected  thereby.  It  will  thus  bo  seen  that  Great 
Britain's  concessions  in  navigation  were  placed  in  the  treaty  as  equivalent  for  admis- 
sion of  Canadian  products  into  the  United  States. 


•"^^^w^^^w^ 


80 


ri|i^ 


'•^f 


{  \ 


We  ixro  entitled  under  the  treat)'  U)  use  the  river  St.  Lawrence  and  the 
canals  of  Canada,  as  the  "  mcjins  of  communicating  between  the  groat  lakes 
and  the  Atlantic  o<-oan,  subject  only  to  the  same  tolls  and  other  asst'ssinents 
as  now  or  may  hereafter  be  exacted  of  Her  Majesty's  subjects."  lint  as  we 
are  tuo  chief  carriers  through  the  Welland  canal  of  wheat,  flour  and  corn 
(almost  the  only  freight  of  our  vessels  by  this  route),  a  discrimination  against 
us  is  made  by  imposing  the  same  tolls  on  these  articles  on  their  passage 
through  this  canal  (a  work  twenty-eight  miles  in  length,  and  forming  the  only 
mojins  of  communication  for  lake  vessels  between  the  upper 
inu"i"m  I'l"" n  Am'"-  iwd  lowcr  lakcs),  as  if  they  passed  through  the  canals  of  the 
lean  vexscu  Galops,  Point  Iroquois,  Rapid  Plat,  Favian's  Point,  Corn- 

wall,  Beauharnois  and  Lachine,  via  Montreal  and  Quebec  to  the  ocean.  Yet 
we  carry  twenty-five  tons  on  the  Welland  canal  for  every  single  ton  we  carry 
on  the  others:  their  respective  amounts  in  1858  being  787,87V  tons  on  the 
Welland  canal,  and  31,968  tons  on  the  lower  canals.  On  the  other  hand,  in 
the  same  year  the  tonnage  of  Canadian  vessels  was  only  360,894  tons  on  the 
Welland  canal,  but  was  725,842  tons  on  the  others.  Thus  our  vessels  are 
heavily  taxed  for  tolls  on  canals  which  they  do  not  use;  the  tolls  collected  on 
the  Welland  canal  from  American  vessels  alone  being  in  the  year  last  men- 
tioned $18,522,  or,  as  is  usuiil,  more  than  half  of  the  whole  amount  collected 
on  all  ihe  canals  in  the  province;  while  we  paid  only  $405  on  the  St.  Law- 
rence canals.     (See  Canadian  Trade  and  Navigation,  1858,  p.  40.) 

While  an  effort  is  thus  made  to  divert  the  i)roduco  of  the  West  to  the  St. 
Lawrence  by  discriminating  tolls,  it  is  also  attempted  to  secure  the  carriage  of 
iron  and  salt  to  the  West  by  passing  them  free  through  the  Welland  canal, 
if  tbey  have  paid  tolls  on  the  canals  of  the  St.  Lawrence — thus  affording  an- 
other example  of  the  studious  and  systematic  evasion  of  the  spirit  and  letter 
of  the  treaty  ratified  under  the  promise  of  reciprocity. 

Nature,  in  the  severity  of  climate,  has  placed  the  St.  Lawrence  under  in- 
surmountable disadvantages;  and  that  its  deficiencies  as  an  available  and 
reliable  inlet  and  outlet  for  the  internal  and  external  trade  of  Canada,  are 
duly  felt  by  the  Canadian  and  Imperial  governments,  is  demonstrated  by  the 
extension  of  the  Grand  Trunk  llailroad  (a  British  work)  to  Portland,  by  a 
perpetual  lease  of  an  Americjin  railroad  to  that  place.  Every  element  enter- 
ing into  the  price  of  fraight,  and  determining  the  channel  of  European  and, 
yet  more,  of  tropical  trade  with  Canada  and  the  North- West,  is  in  favor  of 
our  sea  ports  over  Montreal  and  Quebec  as  natural  ports  of  entry. 

Whilst  vigorous  efforts  have  been  made  by  means  of  Canadian  canals  to 
divert  western  traffic  from  our  lines  of  communication,  the  peninsular  shape 
of  Canada  West  has  caused  the  disclosure  of  the  same  intention  in  the  con- 
struction of  five  different  railroads  across  the  peninsula.  Two  cf  them  cor- 
nect  Lake  Huron  with  the  Lakes  Erie  and  Ontario.     Two  othera  extend  from 


U 


31 


the  St. 


the  St.  Clair  River  to  Lake  Ontario,  one  of  them  leading  also  across  the 
flUNpension  biidt^e  near  the  Falls  of  Niagara.  Another  is  laid  near  tlio  Wel- 
land  Canal  from  Lake  Erie  to  Lake  Ontario.  They  all  complete  at  or  above 
Toronto  the  connection  of  the  various  Lakes.  These  roads  could  not  have 
been  made  for  the  use  of  this  province  with  a  pojiulation  at 
the  largest  estimate  of  no  more  than  three  millions — not  pri.ciiuiionscifran- 
more  than  one-tlurd  of  wluch  occupies  the  country  al)Ove  husIhIh  ikt  cnnuu 
Toronto — the  regions  through  which  these  roads  run.  Nei- 
ther the  population  nor  productions  of  Canada  are  sufficient  to  support  them. 
Tliey  have  been  made  on  the  invitation  of  the  Imperial  government  (see  Re- 
port of  the  Canadian  Parliamentary  Committee  on  Commerce,  1858,  )>.  4), 
and  by  British  capitalists  sustained  by  "imperial  credit"  for  the  purpose  of 
securing  our  western  trade.  They  were  chiefly  constructed  with  a  view  to 
the  inconsistent  distinction  made  by  oar  laws,  but  having  no  foundation  in 
justice,  permitting  foreign  or  American  merchandise  to  be  conveyed  by  land, 
or  partly  Ijy  land  and  partly  by  water,  from  one  part  of  the  United  States  to 
another  by  Canadian  lines  of  communication,  while  we  prohibited  their  car- 
riage from  foreign  vessels  from  one  American  port  to  another.  Laigo  quan- 
tities of  grain  and  merchandise  are  thus  sent  to  and  from  the  United  States 
through  various  Canadian  ports  on  Lakes  Erie,  Huron  and  Ontario. 

It  was  enacted  by  Congress,  March  3,  1817,  sec.  4,  that  "  no  'goods'  shall 
be  imported  under  penalty  of  forfeiture  thereof  from  one  port  in  the  United 
States  to  another  port  of  the  United  States  in  a  vessel  belonging  wholly  or 
in  part  to  a  subject  of  any  foreign  power;"  and  the  evasion  of  this  law  by 
these  railroads  enabling  Canadian  to  compete  with  American  vessels  may  be 
illustrated  by  the  case  of  the  Welland  railroad,  a  line  only  about  twenty -eight 
miles  in  length  and  running  alongside  of  the  Welland  canal.  Its  owners 
carried  a  large  proportion  ot  the  grain  sent  last  year  from  Chicago  to  Oswego, 
receiving  it  at  one  end  of  their  line  from  Canadian  vessels  and  delivering  it 
to  vessels  of  the  same  nationality  at  the  other,  thus  by  the  simple  process  of 
transhipment  evading  and  frustrating  the  laws  by  which  no  foreign  \essel 
could  carry  direcLly  from  Chicago  to  Oswego.  In  this  competition  of  ship- 
ping interests  there  can  be  no  equality  so  long  as  Canadian  legislation  makes 
the  price  of  ship-building  materials  cheaper  in  their  country  than  in  this. 

These  efforts  to  divert  our  own  traffic  from  our  own  ter- 
ritory, although  important  in  themselves,  are  insignificant  in  oft"a'n<rrninkUie 
comparison  with  the  ambitious  schemes  developed  in  the  con-  n'u.,Vi'«i  I'lowoV'of 
struction  of  the  Grand  Trunk  Rtiilroad — a  work  owned  by  "'""  "' 
a  combination  of  British  cjipitalists.  In  our  commeivial  age,  Bricish  capital 
is  the  power  behind  the  throne,  and  the  armies  and  navies  of  Great  Britain 
follow  and  protect  the  enterprise  of  her  subjects.  Having  enlisted  in  their 
service  the  special  and  individual  interests  paramount  in  certain  pojtious  of 


'^ft 


r.t  ' 


32 

the  province,  tlio  maniifjfers  of  this  road  in  omulntion  of  tho  nnciont  iiiHuence 
of  tho  Eiist  India  Company  on  an  imperial  govermnent,  have  Kiilijcctcd  tlio 
Parliament  of  Canada  to  tlioir  control. 

Already  expending  yearly  $0,000,000,  nominally  in  snhhidiziiit;  Ntcamships 
for  tho  postal  service,  and  only  receiving  for  it  a  direct  .eturti  of  $3,000,000, 
the  statesmen  of  Great  Britain  obtain  a  remuneration  for  the  ontlay  in  the 
influence  thus  acquired  over  tho  commerce  and  hence  in  the  politics  of  tlw 
world.  They  soon  perceived  the  importance  of  obtainino;  a  route  to  and  from 
Canaila  at  all  seasons  of  the  year,  and  that  liberal  aid  to  a  railroad  comnui- 
nicjiting  to  tho  Western  Stiitos  through  this  province  might  atl'oct  our  domes- 
tic politics,  and  render  us  yet  more  tributary  to  the  wealth  and  power  of  our 
chief  commercial  rival.  They  thus  projected  the  groat  work  of  tho  age  for 
purposes  corresponding  to  the  magnitude  of  its  physical  proportions.  Intent 
on  securing  tho  valuable  prize  of  Western  trade,  $10,000,000  wore  advanced 
to  the  thoroughfare  known  as  the  Grand  Trunk  Railroad,  virtually  as  a  per- 
petual loan.  The  road  was  relieved  from  the  jiayment  of  interest  on  this  vast 
sum,  and  tho  lien  of  the  province — a  first  mortgage  on  tlio  road  and  its  ap- 
purtenances— was  rendered  secondary  to  the  other  bonded  debts  of  tho  com- 
pany. Thus  an  additional  loan  of  $10,000,000  more  was  otlocted  upon  tho 
stock  exchange  of  London.  The  interest  on  the  sum  of  $10,000,000  which 
had  thus  for  practical  purposes  ceased  to  bo  secured  by  tl  j  road,  is  not  paid 
from  tho  receijtts  of  the  road,  but  creates  those  government  nocossities  which 
the  present  high  tarilf  is  nocesiary  to  supply. 

Already  this  gkand  incorporation  is  enriched  by  carrying  the  mails  for 
tho  United  States,  Great  Bntain,  France  and  various  otiier  countries  on  the 
European  continent.  Its  managers  congratulate  thomselvos  that  "  the  battle 
ground  of  their  competition  will  not  be  in  Canada,  or  fought  against  British 
capital,  but  against  their  American  rivals."  The  road  is  made  in  the  most 
substantial  manner,  and  apart  from  its  smaller  provincial  lines  extends  nearly 
a  thousand  miles  from  Portland  to  the  St.  Clair  river  opposite  Detroit.  With 
both  its  adjuncts  from  Quebec  and  Portland  to  Sarnia  and  Detroit  (the  doors 
to  our  prairies),  it  measures  1,116  miles  in  length,  and  tributiry  to  it  are 
various  other  roads.  The  total  length  of  these  lines  is  2,093  miles,  and  their 
ci>st,  with  equipments,  wjis  more  than  $100,000,000.  It  is  the  great  railroad 
of  the  world — unoqualed  in  extent.  The  Victoria  Bridge,  crossing  the  St. 
Lawrence  at  Montreal,  is  unsurpassed  by  any  monument  of  human  enterprise, 
power  and  skill  erected  during  tho  present  century.  It  is  two  miles  in  length, 
over  a  vast  and  rapid  river.  By  means  of  this  bridge,  the  Grand  Trunk 
Railroad  can  transport  goods  for  a  distance  of  1,400  miles,  from  the  Atlantic 
to  the  Mississippi,  with  but  one  transhipment.  The  change  in  tariff  of  which 
we  justly  complain,  was  caused  by  the  capitalists  interested  in  this  road,  who 
supported  by  tho  British  and  Canadian  governments,  hope,  in  addition   to 


4 


ii 
t] 
\l 

is 
it 

PI 


llti 


88 


securing  (lio  trade  ol'tlie  Wctstcrn  Stiitcs,  to  divert  from  us  tin;  profit  of  huyint^, 
sellinif  and  carrying  (lie  coinnKxlitios  jjroiiucod  or  consuniod  l)y  the  people  (»f 
the  peninsula  of  Canutla.  This  they  jiropoae  to  effect  hy  the  liigh  tariff  and 
(lifferential  duties  aheady  mentioned  and  professedly  ma<le  in  favor  of  direct 
sbipmont  to  Quebe<!  and  Montreal.  The  interests  of  those  places,  however, 
are  suhserviont  to  the  road,  the  government  having  reserved  to  itself  the  right 
of  permitting  goods  to  bo  brought  through  the  United  St.ates  in  such  cases 
ns  it  may  choose,  subject  only  to  such  a  valuation  as  if  they  were  imported 
directly  from  the  country  of  their  origin.  This  intluenco  far  from  being  con- 
fine<l  to  (.'anada,  is  felt  throughout  the  Western  States,  penetrating  to  Mern- 
I)his,  and  already  diverting  from  Charleston  and  New  Orleans  tho  cotton  and 
other  products  of  tbe  south,  and  seeking  to  transfer  tho  shipment  of  tho  great 
southern  staple  to  tho  terraimis  at  Portland,  on  its  way  to  tho  factories  of 
New  England  and  Europe.  Tho  experiment  is  boldly  pushed  in  a  manner 
indicating  less  the  struggle  for  temporary  trade  tban  for  permanent  ernjiire. 
Flour  bius  been  carried  from  Chicago  to  Portland,  and  merchandise  fiom  Bos- 
ton to  Chicago,  at  prices  fabulously  low.  It  is  stated  on  credible  authority, 
that  11,720  barrels  of  flour  were  carried  over  the  bridge  at  Montreal  in  five 
days.  This  is  at  the  rate  of  855,560  barrels  in  tho  year,  being  20,104  bar- 
rels more  than  tho  whole  amount  transported  by  the  Eiie  canal  to  tide  water 
in  1657. 

By  a  system  of  bounties  and  special  privileges  lavishly  applied  wherever  the 
ingenuity  of  British  statesmen  can  suggest  their  profitable  use,  all  fair  rivalry 
with  this  road  has  been  destroyed.  To  facilitate  this  undertaking  a  nominal 
duty  only,  chiefly  loss  by  27^^  per  cent  than  was  paid  on  similar  materials  for 
our  roads,  was  imposed  on  the  iron  used  in  its  construction.  It  is  exempt  from 
taxation  throughout  its  entire  length.  Steamships,  subsidized  by  the  British 
government,  meet  its  eastern  termini  in  winter  and  in  summer;  laws  have 
been  passed  in  Great  Britain  discriminating  in  favor  of  this  road  against  dif- 
ferent ports  in  our  own  country — against  all  roads  owned  by  our  own  people 
on  our  own  soil — subjecting  certjiin  articles  sent  to  Great  Britain  via  Port- 
land, to  the  same  duties  oiily  iw  if  imported  directly  from  Canada;  establish- 
ing an  unjust  precedent  for  future  legislation  and  for  the  power  reserved  by 
the  Canadian  government.  No  interest  is  jxpected  on  tho  $16,000,000  ad- 
vanced by  government.  Tho  patronage  of  Great  Britain  and  the  provinces 
is  in  its  favor.  It  possesses  at  Portland  an  extensive  range  of  docks,  where 
its  cars  run  alongside  of  tho  ocean  steamers.  Cheap  fuel  is  bountifully  suj>- 
plied  at  all  its  stations. 

The  hope  of  reciprocity  in  tho  carrying  trade  is  futile,  when  such  distinc- 
tions are  made  in  favor  of  this  gigantic  competition.  The  British  govern- 
ment, pureuing  that  commercial  policy  by  which  its  historical  career  has 

alw.ays  been  characterized,  has  not  supported  this  road  with  a  view  to  the 
3 


!i:' 


«V1 


I    I 


prortt  of  tho  stockholtlors,  but  with  »  dcHij^ii  of  oj'Oiiiiij^  ii  direct  trade  with 
the  interior  of  thin  continutit,  and  of  enabling  her  inanufuctururN,  bankern  and 
njcrchantH,  by  incanH  of  agcntH  in  tho  Western  Statfs,  to  fonvort  to  their  own 
iiM^  tho  profits  and  coinniitwions  now  ina(h)  in  our  Atlantic  citioH.  It  in  in- 
tended, ultimately,  to  uho  Montreal  and  Portland  an  way  stntionti  oidy,  for  n 
Hystom  of  conununieation  including  tiio  (K'oan  and  tho  (irand  Trunk  liailroad 
with  its  western  conncctionH,  thus  uniting  Liverpool,  London,  (llaogow,  Shof- 
fieKl,  Manchester  and  Birmingham,  tho  commercial  and  manufacturing  cities 
of  England,  with  our  inland  cities  in  tho  valleys  of  tho  Lakes  and  MiKsissippi. 
Tho  whole  plan  and  ptructuro  of  this  monoi)oly  for  tho  aggrandisement  of  n 
foreign  power,  is  conceived  and  built  upon  tho  basis  of  our  bonded  system, 
and  tho  liberal  exerciso  of  ofHcial  authority  under  tho  act  of  1700,  and  the 
warehousing  act  of  1864  (and  cerbiinly  under  the  most  liberal  construction 
of  the  act  of  1700),  permitting  tho  transit  of  foreign  and  domestic  goods,  first 
through  our  territory,  then  through  Canada,  ond  afterwards  to  their  ultimato 
destination  in  this  country.  Th  law  of  1700  was  enacted  at  a  timo  when 
its  framei-s  could  not  have  foreseen  any  such  application  of  its  authority  as  to 
permit  tho  productions  of  American  origin  to  be  taken  from  ono  section  of 
the  United  States  through  a  foreign  country,  by  foieign  means,  to  another 
taction  of  tho  United  States,  duty  free. 

Koiiy  nnii  injiiK-  '^''®  inconsistency,  not  to  say  injustice,  must  bo  apparent 
er'nnicnt  'nol  pro-  ^^  *'^"**  pol'cy  which  prohibits  transportation  in  foreign  ves- 
eTit»!r*'ri»e^"'f  ro'ra  ^^^'  ^'"'""  '^"^  American  port  to  another,  and  at  tlio  same 
foreigu  aggrcssioa.  time  toloratcs  tho  siimo  transit  from  tho  same  ports  to  the 
same  ports  through  foreign  means,  de\eIoped  in  another  form,  and  equally 
in  rivalry  with  the  enterprise,  labor  and  capital  of  our  own  citizens.  From 
such  inconsistent  legislation,  or  a  too  liberal  construction  of  it,  a  foreign  gov- 
ernment now  derives  a  license  for  its  subsidized  and  privileged  road  to  become 
the  great  carrier  of  our  exports  and  imports  to  and  from  our  western  and 
eastern  States.  In  addition,  this  foreign  monopoly  sustains  its  passage 
thiougb  our  territory  under  the  evasion  of  the  spirit  of  our  laws,  and  enjoys 
under  a  perpetual  lease  the  use  of  property  which  non-resident  aliens  thus 
situated  could  not  hold  in  fee. 

The  ch.-ingcs  to  be  produced  by  this  grasping  monopoly  will  bo  developed 
with  the  rapidity  characteristic  of  modern  times.  They  will  include  the 
whole  system  of  our  commerce  and  industry.  Qv&xt  Britain,  by  saving  inter- 
mediate profits,  will  be  enabled  to  sell  her  manufactuics  in  close  competition 
with  our  own,  will  obtain  on  easier  terms  the  produce  of  tho  west  and  tho 
south,  of  which  she  is  the  chief  foreign  consumer,  and  will  transact  an  increased 
business  in  tho  merchandise  bought  by  her  from  other  countries  and  sold 
to  us.  The  reward  thus  obtained  will  be  ample  compensation  for  the 
large  outlay  on    this  road,  and   its    seemingly  reckless  competition.     This 


I 


'.]o 


From 


ititcriiiitioti.-il  iiitorcourao  onco  full)'  ostiihli'^hed,  profitublo  pticuH  for  iVoight 
will  Ikj  uxac'tu)!. 

Tills  vast  (loimnercial  Htriijrglu  wlioro  monopoly  is  tho  on<l  to  I")  piinod, 
must  toriiiiiiato  in  n  coIohhuI  (■uiiihiiiutiuii  of  Arncriuin  cujiital  uikI  nbility,  or 
till)  field  inuHt  i)u  ahaiidoiutd  lo  tliuir  loyal  rival. 

Already  in  tho  livu  various  linos  of  railroad  from  tliu  onstorn  to  llio  north- 
western States,  nnd  vsitli  a  water  line  of  transportation  unsurpassed  in  ihii 
world,  throuf^h  our  own  country,  from  Li'kos  Superior  and  Mioliin-an  to  tlm 
Atlantic,  we  havo  sufHcienl  competition  to  insure  iiKxIerato  rates;  nnd  tho  ulti- 
mato  inter()st8  of  producer  and  consumer  are  alike  consulted,  l>y  Jiayiiii;  a  fair 
and  remunerative  price  to  tho  carrier,  i-hould  tho  present  ruinous  competi- 
tion continue,  it  will  be  followed  by  [)riccs  of  freif;ht  to  nnd  from  the  west 
dictated  by  combinations  secure  in  their  monopoly,  und  rc-imbursitig,  by  taxo» 
on  tho  western  producers,  tho  losses  they  havo  sustained. 

This  "Treaty  of  Reciprcx'ity"  was  not  on  our  part  founded  only  on  commor- 
eial  considerations,  but  was  regarded  as  inaugurating  a  system  of  international 
fraternity.  A  real  and  permanent  frame  for  tho  comprehcnsivo  principles  on 
which  our  own  institutions  are  based,  and  for  tho  popular  instincts  expressed 
among  less  practicfil  nations  in  vaguo  sentimonfalism,  wjis  sought  in  a  system 
of  mutual  benefits  intended  to  give  each  country  all  the  advantages  of  annex- 
ation without  its  entangling  political  difllculties. 

Tho  natural  ndaptiition  of  tho  United  States  and  Canada  to  give  and  re- 
ceivo  reciprocal  benefits,  easily  and  without  humiliation  conferred  by  neigi. 
bors  on  each  other,  is  well  known;  but  tho  explicit  and  earnest  appeals  of 
Canada  for  an  honorable  and  mutually  beneficial  reciprocity,  arc  now  n«i 
longer  uttered.  With  an  increase  of  wealth  and  importance,  the  liberality  of 
her  spirit  and  of  her  promises  has  ceased ;  and  deeming  herself  secure  in  our 
forbearance,  Canada  has  adopted  by  her  recent  legislation  a  policy  intended 
to  exclude  us  from  all  tho  geographicjil  benefits  of  our  position,  while  she 
hopes  to  use  all  their  advantages  for  her  own  gain.  Each  concession  has  been 
used  !i8  a  vantage  ground  for  further  encroachments;  she  has  reversed  the 
natural  laws  of  trade,  and  prevents  merchants  and  agriculturalists  from  buy- 
ing in  the  sjmie  market  where  thoy  sell.  The  revenue  formerly  collected  on 
our  northern  frontier  luis  been  annihilated.  She  has  increased  lior  own 
revenue  by  a  tax  on  American  industry.  Tho  .advantageous  trade  formerly 
carried  on  with  Canada  by  the  cities  and  villages  on  our  northern  frontier, 
has  been  destroyed.  Our  farmers  and  lumbermen  encounter  the  competition 
of  new  nnd  productive  territories.  It  having  been  found  that  our  shippers, 
sailore  and  merchants  in  tho  Atlantic  cities  were  transacting  a  mutually  pro- 
fitable business  with  Canadians,  the  grasping  spirit  of  their  legislation  endea- 
vored to  secure  all  tlie  benefits  of  this  trafl:ic,  and  att.ncked  our  interests  with 
discriminating   duties.       Our    railroads    suffer   from    a    British  competitor^. 


8(( 


i 


mippoiloil  bv  piivili'ijoH  oqiiivalfiit  to  tiixntioii  dii  (luiir  l)iiHiiit«H  with  tlui 
C"iiim<liaii  |>n)\iiuv  iiikI  llio  iiid-iior  of  our  own  (uiiiitiy.  Our  iimiiut'mtmvrh, 
itmtwiil  ofi!X|ii>rlin>j;  to  (.'uniidii,  aru  cliccktd  l»y  imports  inloniltHi  noon  tu  pro- 
hibit tho  oiitnitiiM!  of  ihoir  proibictioiw  into  tho  provini'o.  Tho  wool  anil  raw 
iiKitt-rialH  of  (!iiiia'la  arc  aihnittt!<l  (hity-fn-o  into  our  tiiarkotH,  but  tho  fabrics 
niaili-  from  tlitiin  aro  uxchKltii  from  Caiuwhi,  contrary  to  tho  explicit  iinMurance 
of  tlif  ISritish  Miuistur  on  lichalf  of  tho  Canuilian  ^ovornmcnt,  that  it  would 
lies  williiiic  to  carry  tho  principl<w  of  rocipnn'ity  out  htill  further.  Hitherto 
tho  vaunteil  advantaijfos  from  navit^ation  tlirouixli  tlio  St.  fiawroiici!  havo  been 
scarctjjv  worthy  of  any  Kcrious consideration.  Tlie  protfered  hand  ofcoinmer- 
<'ial  fiiiMidship,  accepted  for  a  timo  by  C!anada,  with  far  more  ndvant.iifo  to 
Canadians  than  to  ourselves  is  now  rojoctud.  In  this  oxclusivi)  and  unnatu- 
ral system,  Canadians  yet  depend  upon  our  market  for  the  sale  of  their  pro- 
ductions, upon  the  immense  traflie  of  our  States  for  their  carrying  trade,  and 
npoti  our  tiMritory  for  the  means  of  transit  to  the  ocean.  Kor  tiieir  partici- 
pation in  the  traflie  of  our  States,  which  is  the  olyect  of  their  unscrupulously 
aggressive  tariffs,  they  depend  upon  tho  contirnied  liberality  of  our  revenue 
regulations,  made  under  laws  giving  great  discretionary  powers  intended  to  bo 
used  in  facilitating  our  commerce  instead  of  advancing  tho  eonnneroo  of  a 
foreign  country. 

Tho  results  of  the  Reciprocity  Treaty  and  l/anadian  legislation  upon  our 
corauierco  nnd  revenue  are  too  obvious  to  have  escaped  the  sagacity  of  British 
statesmanship.  15y  the  treaty  we  jtlacod  Canada  on  an  eipiality  with  one  of 
the  States  of  this  Union,  without  subjecting  her  to  any  of  its  burdens.  Hy 
her  legislation  in  imposing  extraordinary  (axes  upon  the  jjroducts  of  Amer- 
ican industry,  she  is  compelling  us  to  bear  her  burdens  created  to  sustain 
:gigantic  rivalries  worthy  of  tho  imperial  ambition,  for  supremacy  by  land 
jiud  watt!r  over  our  inland  commerce,  arid  for  tlio  grave  influence  which  thus 
may  be  exeri'ised  upon  our  politic.-il  career. 

Tho  tenor  of  tho  instructions  under  which  this  Report  is  mad(%  excludes 
tlie  idea  of  any  rocnmiondation  upon  my  part  pointing  towards  any  remedy 
of  the  great  evils  vMch  investigation  has  thus  shown  to  exist  under  this  sys- 
tem of  miscalled  i.ieiprocify.  I  cannot  but  believe,  however,  that  1  should 
fail  in  the  duty  assigned  to  me,  if  I  omitted  to  at  least  sugge.st  tho  practical 
results  to  which  the  foregoiiig  considerations  would  lead. 

A  treaty  broken  is  a  treaty  no  longer — obligations  upon  one  part  cease, 
when  correlative  obligations  have  no  binding  foicc  upon  the  other.  That  th« 
substance  and  spirit  of  this  treaty  have  been  more  than  disregarded  by  thtj 
other  contracting  power  with  which  it  was  made,  is  too  evident  to  admit  of 
dispute.  It  is  equally  evident  that  a  systematic  scheme  of  provincial  leorisla- 
tion,  affirmatively  aggressive  upon  great  interests  of  this  country,  com- 
menced w  ith  the  ratification  of  the  treaty  as  the  beginning  of  its  opportunity. 


.4 


i 


37 

Mini  li.'iM  |)i(i;,'irsr,(:(l  ill  i(8  sti(  li;;ll»  and  its  <(Xl(;iil,  ill  its  <li!  ails  ami  it^  scopfl, 
ill  all  iliHaNli'iiiiH  ('oiiH(!(|iii!nc(>H  rveiy  day  wliilo  thai  oi>|Hiiliiiiity  lian  cutitiiiiiod. 
Without  ihoti'oatVi  ii'»  wu'li  ajj<i;rt!t*loiirt  could  wvor  liavu hct'ii  nftfiiiptLMl ;  with 
itH  toiiiiinatioii  ihcy  inu.st  rwiHo.  Tln'ii  tho  jjov<'iiiiii('iif  ot"  this  ('(niiitry  cdti 
rt'suinc  thniiij,di  ii'ufiliinalc  iiicnns  flic  protirtidti  of  tliKsc  t,ncat  inti-rcslM  which 
;;ii\i<i'iiiiiciitH  c\iNt,  to  jH'otcct.  Then  the  Canailiaii  I'arliaiiicnt  lllu^«t  Ix^  (inni- 
pclK^d  til  modify  ittt  oxiHtini;  IciriNlation  in  tliift  ruM|)o<;t,  until  thoday  Hliall  ictuin, 
when,  ii»  lic'fon',  f h«  laws  of  tiadc  vgiilatod  hy  tho  Ic^iMliition  of  ConjfvonH,  «hull 
;;iv()  UH  Koiiictliin;^  far  more  like  reciprocity  than  we  now  poHWRH.  The  hoipo 
t,'overiiiiient  —  the  provincial  ;;o\eriimcnt  it.-telf,  in  the  j;i'cat  intoicHtH  entirely 
de.pondeiit  upon  our  trule.  Iiavo  j;iveii  liosta^fCM,  which  will  ho  far  moru 
hiiidiiii;  upon  them  than  this  ruptured  treaty,  that  thuir  leirit^lation  woiiM  not 
then  1)0  8liHped  to  make  us  their  trihiitaries.  I  certainly  nhoiild  ti'ansc((n<l 
my  province  in  makini,'  any  paiticular  sn^i^estion  of  the  mc;ins  of  abioi^atiii!^ 
the  treaty.  It  is  not  for  me  to  say  wli(;tlier  or  not  tho  repeal  of  the  atseiitinj^ 
law  of  Conf^ress,  re(iuircd  by  \t»  fifth  article,  would  havo  that  ed'ect,  or  what 
more  limited  etfucf,  if  any  it  would  liavo.  Convincoil,  nH  I  am,  however,  that 
the  dilatory  measure  of  ^ivin;^  tho  notice  ro(|uii(!d  hy  flio  treaty  for  its  abro- 
gation wouKl  bo  far  too  slow  to  afford  practical  reiiiedios  of  tho  abuses  I  liavo 
exhibited  in  tliis  Report,  I  certainly  should  fail  in  that  <hity,  wiiich  tho  pro- 
loiiyod  and  most  careful  considoration  of  these  most  important  matters  brinies 
so  strongly  liomo  to  mo,  if  1  did  not  nt  least  point  out  the  fact,  that  such 
])ropor  alleration  of  the  navii,'ation  laws  of  1WI7*,  in  relation  to  tho  trans- 
portation of  ujoods  in  foreign  vessels  from  ono  port  in  tho  United  States  to 
another  port  in  the  United  States,  a«  would  make  tho  prohibitions  in  such 
case  upon  foreign  vessels  equally  applicable  to  the  carriage  of  pro])erty  by 
other  foreign  means  from  ono  of  our  ports  to  another;  and  that  the  with- 
drawal of  the  })rescnt  privileges  existing  under  the  laws  of  ]799f  and  lH54j, 
in  reference  to  the  shipment,  carriage  and  re-entry  of  property  going  to  and 
from  tho  United  States  and  Canada,  would  in  a  inost  important  degreo 
hasten  tho  riMiioval  of  many  and  perliaps  all  of  the  numerous  evils  I  have 
stated.  Tho  necessary  conseijuences  of  such  action  must  bo  the  alteration  by 
tho  Canadian  Parliament,  now  in  session,  of  tho  legishition  under  which  wo 
now  suffer.  Tho  wrongs  of  to-day  would  thus  bo  immediately  but  perhaps 
only  temporarily  mitigated.  The  proper,  radical  and  suflicient  remedy,  be- 
yond question,  is  tho  speedy  abrogation  of  the  treaty  itself. 

ISRAEL  T.  HATCH. 
WASiitNOTON,  March  28,  ISOO. 


com- 


*  Sec.  4  Navigation  Laws,  March  1,  1817. 

t  .'^cc.  47  of  Revenue  Laws,  passed  March  2,  179!>. 

t  Sec.  5  of  Act  to  extend  Warehousing  Sy slvm,  pusscd  March  28,  1854. 


38 

Xoi K. — The  flscnl  year  of  Canada  (onninatoH  iij'on  the  Slst  day  of  Doct'inlMM-. 
which  iiiukfs  statistifial  comparisons  hctwof  n  tlit-  two  countries  very  (litllcult  As  our 
fiscal  year  eml)race8  jmrts  of  two  years,  \  have  generally  adojited  in  my  calculations 
fur  compavisons  (he  Canadian  fiscal  year. 

"  By  e  vlfuding  the  ad  valorem  princ-ido  to  all  importations  and  thereby  encour. 
aging  and  developing  the  direct  trade  between  Canada  and  all  foreign  countries  by 
Beo,  and  so  far  benefitting  the  shipping  interests  of  (ireat  Uritain — an  object  which  is 
partly  ittained  through  ihc  duties  being  taken  upon  (he  value  in  the  market  where 
lost  l)ought — the  levy  of  specific  duties  for  several  years  had  comi)le(ely  <livorted 
the  trade  of  Canada  in  teas,  sugars,  etc.,  to  the  American  markets  (our  Atlantic  cities), 
and  had  destroyed  a  very  valuable  trade  which  formerly  exis(ed  from  the  St.  Law- 
rence to  (lie  Lower  Provinces  and  West  Indies.  It  w  as  belii  ved  that  the  comi)Ictiou 
of  our  canal  and  railroad  systems  (via  Portlond),  with  the  improvements  in  the  navi- 
gation of  (he  lower  St  Lawrence,  jusdfied  the  belief  that  the  snpjdy  of  Canadian  wants 
might  be  once  more  made  by  .sea.  and  the  benefits  of  this  commerce  o))tained  by  our 
own  merrhaiiis  and  forwarders.  Under  (his  conviciion  it  was  determined  by  the 
government  toai>j)ly  the  principle  of  ad  valorem  dudes.  (Mr.  Gait,  Finance  Minister 
of  Canada,  Report,  Mr.rch  1,  18(50,  p.  36.) 

"  Any  increase  of  duty  which  has  been  placed  on  English  goods,  is  quite  indemni- 
fied at  the  increased  cost  by  which  our  canals,  railroads  and  steamshij's  enal>le  them 
now  to  be  delivered  throughout  the  province;  and  if  the  question  were  one  of  com- 
petidon  with  Canadian  manufacturers,  the  English  exporter  is  quite  as  well  off  as  be- 
fore, whilt!  iis  compared  with  the  American,  his  position  is  greatly  improved."  (Page 
38,  same  Report.) 


Letter  of  British  Minister,  loarnii^g  Canadian  Goremment  of  the  consequences  of 
increase  of  Didies  upon  American  products. 

(Gopr.) 

Washinoton,  February  2StIi,  1859. 

Sin. — I  have  (he  hono""  to  acknowledge  the  receipt  of  your  dispatch  of  the  19th 
inst.,  enclosing  a  copy  of  a  report  of  a  CommiKee  of  (he  Executive  Council,  with 
reference  to  a  supposed  design  on  the  part  of  the  government  of  the  United  States 
to  terminate  the  Reciprocity  Treaty. 

A  Resolution  has  been  proposed  by  Mr.  Kino,  of  the  State  of  New  York,  in  the 
Sena(e,  pointing  to  the  terminaiion  of  the  treaty  at  the  peiiod  con(empla(ed  in  the ' 
provisions  of  that  instniment ;  and  suggesting  that  retaliatory  duties  be  meanwhile 
imposed  upon  articles  produced  or  manufactured  in  the  British  Provinces,  which  are 
not  exempted  from  duty  by  the  treaty. 

This  Resolution  was  referred  to  the  Committee  on  Finance,  whicii  has,  however, 
not  reported  upon  the  sulyect 

No  resolution  has,  I  believe,  been  moved  in  the  House  of  Rei/resentativea  ;  but 
there  hiis  been  some  exhibition  of  hostility  to  the  operation  of  the  treaty  in  the 
course  of  the  debate. 

I  am  bound  to  state,  however,  that  the  high  scale  of  duties  now  established  by 
the  Canadian  tariff  has  produced  in  some  quarters  a  feeling  of  dissadstUcdon  whicli 
may  eventually  result  in  a  serious  movement  against  theHtii)ula(ions  of  the  Recii)io- 
city  Tieaty.     It  is  urged  that  while  under  the  treaty.  Canada  has  the  advantage  of 


i 


30 

pourine  hor  raw  productions  into  tho  United  States  free  of  charge,  tbe  American 
trader  whose  exports  to  Canada  consist  in  considerable  part  of  manufactured  goods, 
is  mot'  on  tho  Canadian  frontier  by  a  high  tariff.  The  reciprocal  exoneration  is 
alleged  to  be  more  apparent  than  real,  and  the  United  States  are  represented  to  be 
the  losing  party.  Your  excollonoy  can  judge  how  far  the  impressions  I  allude  to  are 
well  founded,  and  whether  they  might  not  be  removed  by  some  modiflcjtion  of  the 
duties  affecting  certain  Iclnds  of  goods  imported  by  Canada  from  the  Uni  ed  States. 

Tho  governmenta  of  the  British  Provinces  may  be  confident,  that  the  best  eflforts 
of  Hor  Majesty's  Minister  at  Washington  will,  under  the  instructions  of  the  Secretary 
of  State  for  Foreign  Affairs,  bo  always  employed  In  support  of  the  reciprocity  sysUm., 
which  ha«  proved  to  bo  so  advantageous  to  the  Interests  of  Her  Majesty's  subjects. 

I  have,  etc., 
His  Excellency  NAPIER. 

Sir  E.  W.  Hbap,  Bart.,  ' 

etc,  cot.,  oto, 


T 


P^ 


;i  !;, 


w 


i  A 


APPENDIX. 


No.  1. 

Statemkkt  eMhUimj  the  I'alue  o»(f  Ammmt  ••(  Ihitifs  on  Arlkle. 
ported  (lurinij  the.  fiscal  year  mdlng  'Mih  June,  1854,  and  now 
Jkviprocity  Treutij. 

liftle  Vnliie 

ARTIC/.KS.                                       of  Duty  of 

per  cwt.  Articles. 

(irain.  Flour,  nml  Bmulsttiffs 20 $:3,!»0(),073  .. 

.Animals,  free 7r),4()()  .. 

dutiable 20  ....  225,042  .. 

Fresh,  Pinokod,  and  Salted  Meat, 20 5, 1 84  . . 

Cotton,  Wool,  free 12r)  . 

Heeds,  Plants,  Shmbs,  etc.,  free 18,210  ., 

dutiable 20  ....  .555  .. 

Vegetables 20 102,800  .. 

Uudried  Fmita 20  ....  13,092  ., 

Dried  Fruits 20....  ;{|    .. 

Fibh  of  lUl  kinds 20 901,671  .. 

I'roduc't.s  of  Fish  and  of  all  otlier  creatures 

living  in  the  water 

Poultry 20  ....  1,016  .. 

Eggs 20 .5,.500   .. 

Hides  and  Skins 5   ....  .34,729   .. 

Furs,  undres.sed 10 13,920  .. 

Tails,  undre.ssed 20   8  .. 

Unwrought  Stone 10 10,7.58  . 

Unwrought  Marble 4 4  . 

Huttcr 20  ....  126,811   . 

Cheese 30   ....  127   . 

Tallow 10  ....  37  . 

Lard 20  ....  8.37  . 

Horns 5  ....  1,421  . 

Manures 

Ores  of  Metiils,  free 18,790  . 

dutiable 20  ....  .516  . 

Coal .30 254,775  . 

Pitch,  Tar,  and  Turpentine 20 75   . 

Ashes 20 4,441  . 

Fire  and  otlier  Wood .30 728,688  . 

All  other  Wood 20  ....  574.051   . 

Pelts 20  ....  24.639  . 

Wool.. .30 69.182   . 

Fish  Oil 20  ....  110,402  . 

Uice 

liroom  Corn 

Hark 20  ....  978  . 

Gypsum,  ground 20 353  . 

free,  unground 113,312   . 

Grindstones 5 23.265. 

Dyestuffs : 5....  14,717. 

Hemp.  Flax,  Tow.  unmanufactured 

Tobacco,  unmanufactured 30 2.915  . 

Rags 5 12.696. 

Total $7.398,.358  . 

Deduct  for  iJritish  North   American  Prov- 
inces   1,301,154  . 

Leaving  for  Canada $6,097,204. 


.s  which  were  iin- 
made  free.  I>y  the 


I)llti(!,<, 

$781,214 

60 

4.5,128 

40 

1,036 

80 

111 

00 

20,.561 

20 

2,738 

40 

6 

20 

180,3,34 

20 

20.3 

20 

1,100  00 

1,7.34 

45 

1,392 

00 

1 

60 

1,075 

80 

0 

80 

25,362 

20 

38 

10 

3 

70 

167 

40 

71 

05 

,  103 

20 

76,432 

50 

15 

00 

888 

20 

218,606 

40 

114,810 

20 

4,927 

80 

20,7.54 

60 

22,080 

40 

195 

60 

70 

60 

1.163 

25 

735 

85 

874 

50 

634 

80 

$1,524,457 

40 

231,0.54 

00 

$1,293,403  40 

43 


No.  3. 


SiATKMKNT  of  the  Eevenw.  collecled  nnnnnlly  at  the,  principal  Vort.t  nf  Khtn/ on  the 
Xorth-WisU'rn  Lakes  from  1855  to  ]S5!),  inelusiveh/.  on  Canadian  aiid  all  other  Im- 
portatiouK/rcv}  Canada,  so  far  as  ascertained;  sho'wiruj  Expenditures  over  lieceipU: 


1K6 S:    . 

1«57 o£ 

1H..8 7.,^ 

1859 [2 

Total $  1,907 

Kxjicnscof  eoUcct- 
ingfortimr  joars 
as  per  U.  Htati'S 
Register  for  1857  $21,016 


1 

d 

a 

CJ 

:- 
g 

1 

o 

o 

£ 

3 

1. 

S 

a 

- 

1 

o 

X 

a 

u 

6 

i: 

$  2,fi40 

4,045 

2,900 

3.727 

17,8.S4 

1,735 

1,349 

4,491 

1,797 

7,499 

8,050 

1.074 

8 

2,084 

5,152 

2,907 

2.293 

7,924 

2,109 

10 

2,377 

4,193 

7.803 

1,514 

8,317 
42,131 

958 



8,4,')0 

18,481 

15,407 

15,033  • 

5,9;J0 

18 

54,884    49,312    43,148    32,548    52,652 


26,330     4,424 


i 


ft* 

1-^ 

5 

S 

s 

»'■         i 

SS 

5 

»■?! 

'■■'ii 

? 

3 

'•* 

ss? 

?. 

r-i  <D 

» 

1 

ci 

g 

s 

§1 

i 

-♦ 

IS    ■ 

^S 

s 

St 

X 

oc 

h- 

-t 

<«> 

■s    • 

*  t«     ■ 

1  =    ' 

'■2  ; 

z  a    ' 

■  a  ■ 

1 

-a 

aa 

H 

1850 

1H57 92 

1858 98 

1859 

Total $    190 


62 
5 

22 


2,685 
1,576 
3,095 

2,847 


a 

5,070 

11,822 

13,8K9 

32,905 


6,093 
4,809 
2,93,3 
2,714 


o 

s 

13,801 
9,880 
1..5,35 
2,147 


Total. 


89    9,103    63,752     16,609    27,429    03,014    288,508 


Kxjicn.'io  1)1' collect- 
ing for  lour  years 
as  per  U.  Stales 
Register  for  1857  $i;i,072  14,732  22,312 


58,032     17,828    4.3,872    22,960    478,2,38 


Excess  of  cost  of  collection  over  receipts $  89,730 


No.  4. 

Statkmknt  e.rhihitini;  the  amount  of  Bevenue  from  Didies  o?i  Prodwts  of  American 
ori'jin,  collected  by  the  Canadian  Government]  from  Dec.  31,  1855,  to  Jan.  1.  1860. 

1S56. 

Duties— Specific $ 

•■    20  jjcr  cent 

'•     12>.<andl5      •'     ... 
"    5and2'„'         •'     ... 


1858. 


217,941  99    Duties— Specific 

41.796  00  " 

81,3,041  22 

21,935  90 


Total $1,095,315  00 


25  and  20  pei 

20  and  15    '• 

15                 " 

5  and  2%  " 

Total.... 

cent.  ,. 

$302,955  00 

52,9,'>5  00 

392.123  00 

103,557  00 

11.742  00 


$883,261  00 


1857, 

Dutit's— Spcc-ilio 

"     20  per  cciit 

"     15  ••       '•     ... 

"     rKiiuiL".;      "    .... 


ii 


18,09, 

$20(t.M2  00    Duties  on  AniPriciin  piodiic- 

^•l.,'*,'^.'.  40        tioiia $l.lO!t.»Gl  00 

C.'il'i.lflO  .'{;') 

IT.C.Mi  24 


Toiiii f!i)4;i,!)«;t  ;i8 


Total . 


.$1.10i),4«l  00 


So  tlie  lot.il  ;iiii(nint  of  duties  loviod  in  Canadu  in  1859,  undor  iho  high 
tarlrt',  was  ^4,4^7,840.  In  1858,  iho  whole  amount  of  the  (hities  wuh 
$3,381,389,  of  w'liii'h  more  than  one-fouith  was  levied  on  productions  of 
United  States  oiii>;in.  Il  is  therefore  fair  to  assume  tliat  more  than  !5!l,109,- 
401,  or  one-fourth  of  the  whole  customs  revenue,  arose  from  the  same  source 
in  1859,  the  duties  by  the  tfiiWof  that  year  being  proportioiially  higher  upon 
the  dutiable  articles  exported  from  the  United  States  to  Canada  than  those 
from  any  other  country. 

See  j)ublished  accounts  of  Canada,  1859,  by  Mr.  Gait,  Minister  of  Finance. 


1^ 


No.  5. 

State.mknt  of  the.  Canadian  Tan(f  of  \H'>i),  in  cimfraat  icilh  Vial  of  1854, //le  yfor 

when  the    Treaty  was  made. 


1"69. 


('LANS     1. 


]8,'>4. 


Brandy,  gin,  ruin,  etc.,  100  per  cent. 


Brandy,  40  cents  jier  fral,,  25  jier  cent; 
Rum,  etc.,  25  cents  and  25  per  cent. 


Clash    2. 

40  per  cent,  eifrars,  sugar  refined,  duty  Cigar."",  .30  cents  per  11).  and  12J  per 
on  (he  latter  to  lie  reduced  on  a  sliding  cent.;  sugar  relined,  $2  50  jior  cwt,  and 
scale  to  15  per  cent,  in  18()2.  12 J  jier  cent. 

Class  3. 
.'iO  per  cent,  rnffee  roast  or  ungronnd,  Unrefined  sugar  $  I  20  per  cwt.  and  12* 
sjuees  gnmiid.  drieil  fruits,  8nuf!',  starch,  percent.;  niola.s.«es  4  cents  jier  gal.  ana 
patent  nie<lic:ines,  sugar  not  refined,  and  12J  jtercent.;  coffee  roast  or  groiuid,  $12 J 
molasses,  2  cents  on  a  sliding  scale  to  10  ))er  cwt,  and  12J  i)ercenl.;  and  spice.s, 
per  cent,  in  !S(i2.  ground  or  nnground.  30  per  cent.;  fruits, 

etc.,  snuff.  7  cents  i)er  lb.  and  12  J  percent ; 
starch,  12J  per  cent. 

Class   4. 
15  jier  cent,  tea,  green  coffee,  on  sliding       Tea  2  cents  per  lit.  and  12J  jier  cent.; 
scale  to  5  per  cent,  after  Jan.,  18(13.  coffee  (green)  !t2  cents  jier  cwt.  and  12| 

per  cent 

Cl.AHR    6. 

25  per  cent,  manufactures  of  leather,  viz.        Manufactures  of  leather,  l)oots  and  shoe.*, 
t)Oots,  shoes,  harness  and  saddlery,  eloth-    saddlery,  clothing,  wc'aring  ajiparel,  etc., 
ing  or  wearing  apjiarel  made  by  hand  or    12J  per  cent 
sewing  machine. 

Class   6. 
Goods  paying  20  percent;  leather  and       T'neniimerafed,  etc.,  12J  jier  cent,  in- 
alniost  every  manufacture.  eluding  leather  and  almost  all  manufac- 

tures. 


45 


MM. 


18S4. 
Woollens;  crittons;  (oliacci).  tlils  urlicln 
•icing  iilfo  Niilijcot  wiuMi  iiiiiniit'iictiinMl  to 
ulioiit  2  ccntH  jior  lb.,  iiiiil  sniilf  In  7  tcMite 
ixu'lb. ;  ImtH,  I'lirnitiin',  kIii.ss.  axt-w,  <'(Ip;e 
tooJH,  ugi'iuiiltnral  iniiilciiiciilH,  lianhvuru. 
cttstingH,  mowing  inacliiiicH,  cto. 


HookK  froo;  iron,  bniss  iinil  coiiiht,  and 
nio.st  iirticlcs  in  this  cIiih.s,  ?J  iier  ccnL 


tlash  7. 
Book,  map  and  printing  paper,  If)  per       Paper,  121  per  cent 
cent. 

Cl.AHM     8. 

10  per  rent.,  sliipn'  Itookn,  iron,  brass  or 
I'oppor  in  bar,  rod,  hoop  or  sheet,  win-, 
boiler  i)!ates,  nnijis,  sheet  lend,  candlo 
wicks,  cotton,  yarn,  and  mill  Hhutts,  cranks, 
forged,  in  the  rongii.  and  gtuierally  urtlclcH 
partially  manulactured. 

Cl,AHH    9. 

Spccilic,  whiski'y,  IS  cents  per  gal.  Whiskey  [>  cents  per  gal.,  and  12J  per 

*  cent 

Cr.Asa  10. 
Five,  iron,  zine  and  tin  in  pigs  or  block,       Iron,  brass  and  tin  in  pig  or  blocks,  2J 
all  articles  nunwd  in  treaty  (with  nominal    per  cent 
e.xccplion),  liook-binders'  tool.s,  canvas  for 
sails,  variou.s  artii'les  ifnscd  for  ship  build- 
ing, hat  fcll«  and  bodies,  etc.,  etc. 


No.  6. 

Statement  nhVMnij  in  contrast  the  value  of  each  clas.i  of  Imports  into  each  vounlry 
from  the  other,  <ftlie  different  classes  of  all  articles  eHumvrali:d  in  tlie  Treutii  fur  Jivv. 
years  before  the  Treaty  and  to  Jan.  1, 1859. 

ISfiO.  18.'-,l.  1852. 

Into          into  Into          Into  Iihd          lutd 

„     .           ...      ,,,                                  U.  States.  Caimdii.  U.  States.  Cauuiln.  U.  Stiitos.  Camida. 

Produce  of  the  Mines 41..'.87  17.033        tiiolG  ]02        t4S,J7 

Produce  ot  the  Koivst $1,6.W,4.S8         4.).605  IjL'TUy.'U         IH.tV.O  1 83.S  77.-)       IKil'^O 

ProduceoltlieSra ;)0,94;j         1^1.473  4;i,7v4         •i64W  'iOZf.'i         .'tlOTg 

Animals  and  then- 1'i(k!ucc 490,477       45,'),03rf  ,'Jt;4,7S7       9lW,17U  fiiHilS9       454475 

Agricultural  Produce 2,70U,3«:i       4:i7.IW4  1,937,293       070,327  3.277.yJ9       4-3J37 

Total.-* $4,707,270       99l),f;W  3,S4;!,410    1.740,13,3  0,133,374    1,1^9,707 


IS.M. 

Into  Into 

U.  .'<tate.'<.  C'anailn. 

Produce  of  the  Mines 1..  $     .').S,400  12H.fiS6 

I'roduce  of  the  Koresl 2.5b».h9S  «fl.«20 

Produce  of  the  Sea 7.3.421!  3.S3.4;t6 

Anhnal.s  and  their  Produce 1,107.870  ,570.5«7 

Agricultural  Produce 4,949,570  0(iS,113 

Totals ,  $8,779,106    1,815,342 


]H.')4. 


IS;-,. 


Into 

Into 

Into 

Into 

U.  States. 

Canada. 

r.  Stales, 

C'rinadiu 

118,028 

2.W.1S2 

23.:l(i3 

4.-.5,7;i9 

2,131.723 

107.-159 

3010.8>0 

180,830 

86  472 

74.S51 

]4H.5;0 

201,863 

eS4,4!9 

S4,i.591 

1.4.S5.'.l2.'i 

1.878.0t:4 

5,29.'i.007 

1. (-00,52 1 

ILbOLatn 

4,972,475 

8,305,931     2  7!-4,004      ie,47u.iJJ3    7,72j,i61 


46 


isse. 


I'-ST. 


nrA. 


Into 

V    MtutPH. 

Produce  of  tlii>  Mlncn $      H4.'J2S 

I'roduec  of  tlif  Koient 8,.'14),i;H4 

Produce  of  till' S I'll HO.IMS 

AninialK  anil  tbeir  I'roduce 2,.'I75.;IS8 

AgTlcultiiriil  I'rodutc Il,h8l,8;t0 

TotuU $17,810,084 


Into 

Caniiiln. 

4S8.1IS4 

.•«(•-!  1H)1 

411,71(1 

2,f«lfi  «;is 

3.800,112 


Into 
I',  Sliiti's. 

;i,:u;),otiH 

U.),4I7 
l,ltT4,.'ilii 

7. 100,4  la 


Into 

Ciiniiclii. 
fiOO  4tl4 
4I1.W0 
;tl4.'j»i 

2,i:t4.;i.'i!) 
o.'JTzirii 


Into 
l".  Slai(-,H. 

n.'i  41).) 

3-iio;;mh 

l.'.K  is.-> 

'jail.TMl 

fi,7io,;:o.'> 


Into 

('anadu. 

324,374 

212,177 

l.'.7,fl74 

l,4tM,H73 

3,;i«f),ftl7 


7.»00,&54       12,S12,S0H    8,0I^,0.;0       U,.M4.;i04    fi,6»4.6IS 


!■■ 


No.  7. 

SuMMAUT  shoirhiff  an  anmial  emesn  of  Kjfportations  frdm  Canada  to  the  I'liUed  Staten 
above  those  to  all  other  covntrks  toij ether,  from  Ike.  .'(1.  1851,  to  ,lan.  1.  1859. 


Total  Kiports  from  riinndft  to  the  Unilod 
St4itcs.  (ircai  Urit4iin  and  all  other 
countrifH, 


K.xportH  from  Cnnndnto 
tlie  I'nilcd  .Slaten. 


1855 $  28.inMf>l  $20,002,230 

1850 ;r2.017.0l(l  2().2IS,().''>.T 

1857 27,00(i,(;2i  I(."(12.(i41 

1868 _2;{,472^(i01(  I.i,.i7;!.138 

Totiii $110,0;i4,710  $(i8,:{,)(;,722 

E.\|)()rt»  to  the  United  States $(;s,:^5f..722 

Ex|)ort,s  to  all  other  countries $12,277,1)80 

Amount  of  Canadian  Flxport-s  to  the  U.  S.  above  those  to  Great 
Britain  and  all  other  countries .$2(;,078.8.34 


No.  8. 

SfMMARY  shoidng  an  annual  excens  of  Importations  into  Canada  from  the  United 
Statcnabove  those  from  allothtr  conntries  toijether,  from  Jhc.'M,  ix,'yl, to, fan.  1, 185.4. 


Imports  into  ranad.'i  from  the  United  Statea 
and  all  other  countries. 


Imports  into  Canada  from 
till!  I'nitcd  StatPH, 


1855 $  ;{6,086,lfln  $20.82S,(;7(i 

1856 4.'},58.1,387  22.70t,.'J0<J 

1857 39,4;i0.5!»7  20.221,(i50 

1858 29,078,527  15,(i;;.5,5()5 


Total. 


,179,680   $79,:{93,400 


Imports  from  the  United  States $79.;i9;j.  100 

lm])()rts  from  all  other  countries $G8,78(;,2S0 

Imports  from  the  I'nilcd  Stales  above  those  of  (ireat  lit  iliun..'$l 0.007,120 


V 


■    ,-|*lfi|||iliJi{,pi!!ll 


if 


